Paris judge backs EUR 88m cum-cum settlement for Credit Agricole

Paris judge backs EUR 88m cum-cum settlement for Credit Agricole

A Paris judge has approved a €88 million settlement between Credit Agricole SA and the French prosecutors' office, effectively ending the Cum-Cum investigation for the bank's investment banking arm, Credit Agricole Corporate & Investment Bank. The settlement, announced on Monday, does not include an admission of guilt by the bank [1].

The Cum-Cum probe, which has been ongoing since 2023, targeted allegations that banks were involved in trades designed to evade taxes on dividend payments. Credit Agricole's settlement is part of a broader investigation that has also implicated BNP Paribas, Societe Generale, Natixis, and HSBC Holdings Plc's local unit. While the investigation has led to surprise raids on these banks' premises, none have been accused of wrongdoing [1].

The Cum-Cum scheme involved foreign owners of French stocks lending their securities during the dividend season to exempt entities such as local banks, thereby avoiding withholding tax. The investigation has so far focused primarily on banks, but foreign institutional investors, including asset managers and hedge funds, have been largely spared [1].

The settlement marks a significant step in the French authorities' efforts to combat tax evasion and ensure compliance with financial regulations. The approval by the Paris judge signals that the investigation into Cum-Cum trades is nearing its conclusion, with the settlement potentially paving the way for similar deals with other banks involved in the probe.

References:
[1] https://www.bloomberg.com/news/articles/2025-09-08/credit-agricole-to-pay-about-88-million-to-settle-cum-cum-probe