France to say HSBC Holdings ‘must face tax trial’

French prosecutors are recommending that HSBC Holdings faces a criminal trial over allegations it helped clients evade taxes following a probe where the bank was initially ordered to post a €1bn bail to cover a potential penalty, according to a person familiar with the matter.

Investigative judges will have the final say in the matter after France’s financial prosecutor issued final recommendations in the case, said the source.

Prosecutors accused HSBC of aggravated laundering of proceeds of tax fraud and conspiring to illicitly solicit clients on French territory, the source said.