HSBC to cough up €300m to settle French tax evasion case

HSBC has been forced into settling legal action with French prosecutors to the tune of €300m over alleged tax evasion from its clients in the country.

The financial prosecutor’s office said HSBC’s private banking operations in Switzerland allowed it to avoid paying taxes in France.

Europe’s largest bank will now avoid going to trial in the country for tax fraud, according to a statement from prosecutors, who have dropped the case against HSBC without any admission of guilt.

The case was opened in 2015, when investigators accused executives at the bank of several different methods of hiding assets to to avoid the taxman.

"The investigation regarding HSBC Holdings has been dismissed," HSBC said in its statement.

In addition the bank said it has 2publicly acknowledged historical control weakness at the Swiss Private Bank on a number of occasions and has taken firm steps to address them."