France to send HSBC to trial over tax fraud

French financial prosecutors have asked judges to send HSBC and two former executives to trial on charges of aggravated tax fraud by its Swiss private bank  in a case that relates to files stolen by Hervé Falciani, a former HSBC employee.

If French judges decide to follow prosecutors' advice, HSBC could stand trial in Paris in the first half of next year. The judges could also dismiss the case.

Prosecutors began investigating HSBC in 2014 as part of a widening probe into whether the bank helped recruit customers in France, possibly breaching laws authorizing only French-registered lenders to sign up customers in the country. The investigation also examined whether the bank was complicit in laundering the proceeds of any tax evasion.

HSBC said in a statement Thursday that it takes “note of the recommendation” and will “continue to defend ourselves vigorously.”
Last year, HSBC was also charged by French prosecutors regarding its private bank’s conduct in 2006 and 2007 and simultaneously ordered to pay a €1bnl. Later in 2015, a French court reduced HSBC’s bail to €100m.