HSBC Holdings is reportedly set to pay around 300 million U.S. dollars to settle a criminal case in France related to its involvement in the infamous "Cum-Cum" tax avoidance scandal.

The case has implicated several of France's largest banks. HSBC is preparing to resolve the legal issues stemming from its alleged role in facilitating the Cum-Cum scheme, which involved foreign shareholders of French stocks avoiding dividend withholding taxes. The controversial scheme allowed foreign investors to lend their French securities to tax-exempt entities — such as local banks — during dividend periods to sidestep taxes.

The settlement, which is still pending official confirmation, would resolve HSBC's participation in the scheme, but it comes amid ongoing scrutiny of the practice, which was widely used by institutional investors. The Cum-Cum scandal has resulted in significant legal and regulatory consequences for several global financial institutions, including some of the largest banks in France.

Neither HSBC, the French National Financial Prosecutor's Office, nor the French tax authorities have commented on the specifics of the settlement or the case. The bank's decision to settle is seen as part of a broader strategy to resolve regulatory challenges and avoid prolonged legal battles.

If the settlement is finalized, it would mark a significant step in bringing closure to one of Europe’s most prominent financial scandals, which has raised questions about tax practices in global financial markets.