French prosecutor calls for HSBC to stand trial for tax fraud
A French prosecutor has ordered for HSBC to stand trial following the review of files submitted by a former HSBC employee detailing the bank’s pre-2008 operations seeing its Swiss unit HSBC Private Banking offer customers methods of tax evasion from French authorities via the use of offshore tax havens. The documents have also led to investigations in other European countries such as Belgium and Spain.

A French prosecutor has called for British banking giant HSBC to stand trial for aiding large-scale tax fraud in France, a source close to the probe has revealed.

If the case goes to trial, HSBC would face charges that its Swiss unit HSBC Private Banking offered its customers several ways of hiding assets from the French taxman, notably via the use of offshore tax havens.

The case began when French authorities in late 2008 received files stolen by Herve Falciani, a former HSBC employee.

A French prosecutor has called for British banking giant HSBC Holdings PLC to stand trial for aiding large-scale tax fraud in France, a source close to the investigation says

His disclosures sparked the so-called 'Swissleaks' scandal on bank-supported tax evasion.

The leaked files led to investigations by tax authorities in several European countries, including Spain and Belgium besides France.

Falciani, an IT worker turned whistleblower, stole the files in 2007 and passed them to French authorities.

The case began when French authorities in late 2008 received files stolen by Herve Falciani (pictured), a former HSBC employee

'We take note of the recommendation... and will continue to defend ourselves vigorously,' HSBC said in an emailed comment to Reuters.

The bank was put under formal investigation last year. It will be up to investigating magistrates to decide on whether it should stand trial.

Magistrates had previously estimated the Swiss arm's alleged fraud at around 2.2 billion euros (£1.66billion).