UBS rejects settlement with French authorities

UBS is set to stand trial in France for allegedly assisting clients to evade taxes in France after negotiations between the Swiss bank group and the French prosecutor broke down over the size of the proposed €1.1 billion fine. No date has been set for the trial.

UBS is accused of illicitly soliciting clients on French territory and laundering the proceeds of tax fraud. Last year the French authorities approved a civil settlement procedure requiring that fines be based on the advantage derived from the wrongdoing.

It is understood that UBS was seeking to settle the French investigation for less than the €300 million it paid to resolve a similar case in Germany. The French financial prosecutor sought €1.1 billion, the same amount as the bond posted by UBS in 2014 to cover potential penalties.

“UBS has made clear that the bank disagrees with the allegations, assumptions and legal interpretations being made,” the bank said in a statement. “We will continue to strongly defend ourselves and look forward to a fair proceeding.”

According to the French prosecutor’s office (PNF), UBS holds fraudulent money worth around €9.76 billion on behalf of French nationals. In 2009, UBS paid $780 million to avoid prosecution in the US after admitting it had helped thousands of US clients to evade US taxes.