Credit Agricole agrees to pay $103 million fine in dividend tax case

Credit Agricole agrees to pay $103 million fine in dividend tax case

Credit Agricole SA's investment banking division, Credit Agricole Corporate and Investment Bank (CACIB), has agreed to pay a fine of 88.2 million euros ($103.4 million) to settle a criminal probe into dividend-arbitrage trades allegedly used to avoid withholding taxes. The settlement was announced by a French judge on Monday, September 8, 2025 [1].

The probe focused on complex financial instruments known as "cum-cum" transactions, which were used to help foreign shareholders of French companies avoid taxes on dividends. The settlement, which still requires approval from Judge Peimane Ghaleh Marzban, aims to end the criminal investigation into these transactions [1].

In France, companies accused of financial misconduct such as corruption or tax fraud can settle with prosecutors to avoid trial. The agreement typically involves paying a fine and committing to compliance measures, without admitting guilt or receiving a criminal conviction, as long as the deal is approved by a judge [1].

The fine, equivalent to $103.4 million, is part of a broader effort by Credit Agricole to address issues related to dividend-arbitrage trades. The settlement underscores the bank's commitment to resolving past misconduct and enhancing its compliance measures [1].

Reference List:
[1] Reuters. (2025, September 8). Credit Agricole agrees to pay 103 million fine in dividend tax case. Retrieved from https://www.reuters.com/business/finance/credit-agricole-agrees-pay-103-mln-fine-dividend-tax-case-2025-09-08/