With the recent crackdown on crypto over the notion that virtual assets are mainly unregulated and can be used to commit crimes relating to money laundering, recent revelations have shown that even the traditional financial system is not immune to illicit activities, as these firms have been found guilty of facilitating money laundering using fiat, not bitcoin (BTC).
While banks such as Danske Bank, a prominent financial firm in Scandinavian Denmark, were found guilty of committing such crimes in 2022, authorities in France raided four banks in the country suspected of money laundering and tax evasion fraud.
French Authorities Raid Banks in Paris
On March 28, 2023, the French Parquet National Financier (PNF), a unit of the country’s National Financial Prosecutor’s Office responsible for cracking fraud cases involving economic growth, reportedly raided four prominent banks in the country’s city of love Paris with one bank in Germany over alleged fraudulent activities including tax evasion and smurfing.
According to local media, authorities stormed the banks at around 9:30 a.m. searching the offices for incriminating materials following a preliminary investigation in 2021.
PNF probed the five banks HSBC, BNP Paribas, Societe Generale, Exane, and Natixis, which were raided on suspicions of money laundering and fiscal Fraud, involving more than €100 billion worth $108 billion.
“The ongoing operations, which have required several months of preparation, are being carried out by 16 investigating judges and over 150 investigation agents,” PNF said.
Raided Banks Involved in Cum Cum Practices
During the investigation, the prosecutors found that the banks were involved in “cum-cum” practices used by financial companies to allow certain types of customers to evade taxes for dividends. This fraud method, used mainly in the banking system, allows the firms to create complex legal structures for their wealthy clients to divert funds meant for taxes as profits.
One of the banks, Societe Generale, confirmed the raid to CNBC, noting that the search lasted until late afternoon.
