Swiss bank UBS fined record €3.7bn by Paris court
A court has ordered Swiss bank UBS to pay more than €3.7 billion (£3.2bn) in fines for helping wealthy French clients evade tax authorities, wrapping up one of France’s biggest-ever tax evasion trials.
The Paris court said
UBS was guilty of money laundering and illegal bank soliciting, issuing a record fine.
UBS, one of the world’s largest wealth management banks, criticised the ruling and vowed to appeal.
It denied criminal wrongdoing, saying in a statement that the conviction was based on “unfounded allegations of former employees”.
UBS suggested the ruling was based on French prejudice against Swiss tax practices and insisted that it was only offering “legitimate and standard services under Swiss law that are also common in other jurisdictions”.
The court ordered criminal and civil fines for UBS’S Swiss head office, its French subsidiary and five executives, including former chief Raoul Weil, totalling €4.5bn (£3.9bn).
The executives were given suspended prison sentences. The fines were in line with the prosecutor’s request.
Investigators said the Swiss bank sent employees to solicit wealthy executives or athletes at sport or music events, urging them to place their money in Switzerland.
UBS had rejected an initial offer of €1.1bn out-of-court settlement.