Swiss bank UBS, together with its French subsidiary and six other top executives, will begin trial in France on Monday for alleged tax fraud, increased money laundering, illegal solicitation of customers and helping wealthy clients escape taxation there, Reuters reports.
After several years of investigating and canceling negotiations for an agreement, UBS risks being fined up to five billion euros. After the 2008 financial crisis, banks began to tighten due to various financial scandals in some of the world's largest banks and stricter regulations.
This judgment of the largest Swiss bank in France is similar to a lawsuit that UBS faced in 2009 in the United States, in which it reached an agreement, having paid 679 million euros. Four years ago in Germany, UBS also agreed to pay a fine of 300 million euros.
During the French investigation, UBS refused an offer of € 1.1 billion made by the authorities. According to judicial sources, this figure corresponded to what the Swiss bank had already paid as a judicial guarantee. By money laundering, French criminal law allows judges to impose fines up to half that amount.
In the French case, prosecutors estimate that up to 10.6 billion euros have been denied to the tax authorities.