French authorities on Tuesday searched the Paris offices of five banks, including Société Générale, BNP Paribas and HSBC, on suspicion of fiscal fraud, part of a broad European probe into the dodging of dividend tax payments, reports U.S. News & World Report.
Société Générale confirmed the searches, declining further comment. The other banks concerned did not immediately reply to requests for comment.
The French prosecutors' actions are the latest to hit global banks over the dividend tax fraud scheme as similar investigations have been conducted in Germany and other European countries.
The PNF financial prosecution office said in a statement the probe was linked to so-called "cum-ex" dividend stripping, a trading scheme whereby banks and investors swiftly trade shares of companies around their dividend payout day.
The practice aims to blur stock ownership and allow multiple parties to illegally claim tax rebates on dividends.