In the process at the Paris criminal court against the UBS , in which the core of the accusation of money-laundering and aid to the tax evasion , have announced the judges on Wednesday its verdict. The largest Swiss Bank, was spoken guilty and must pay a fine of 3.7 billion euros.
to condemning The French UBS subsidiary was spoken of for the above Offences is also guilty was a fine of 15 million euros. The court spoke of an “exceptionally serious” Offense of the Bank.
Additional compensation
in Addition, you must pay the Bank compensation payments in the amount of 800 million euros to the French state. This had demanded 1.5 billion. The Prosecutor of the Republic had not objected to the construction of a sophisticated fraud and money – laundering system. In July 2014, UBS had already put a security Deposit of 1.1 billion euros.
It is the largest due to the tax fraud penalty in France.
stock exchange acknowledged the judgment at a discount to UBS securities
The UBS share price has strongly reacted to the first News of the judgment and a fines of up to 15 at well over 4 percent (SMI 0,5%). With the judge saying the stock market also reacts the same way: Shortly after 13:30 the UBS share price dips.
Six former managers of the Bank were sentenced to probation and must pay fines of up to 300’000 Euro. The former number three at UBS, Raoul Weil, has been spoken against it. His Position in the company had not been directly with the French market in connection, stated the judge.
money transfers to Switzerland allegedly
veiled the court followed the national financial Prosecutor’s office, which had found an “extraordinary Severity” of the fault. UBS recruited according to the investigators, in the years 2004 to 2012 aggressively for wealthy French customers. So business men or sports stars at receptions, Golf or tennis are tournaments have been convinced to hide their money with the help of Trusts, foundations and Offshore companies before the tax authorities.
According to the documents, the German authorities handed over to the French investigators, have invested a total of around 38’000 customers in France eleven billion euros in the Bank. The money transfers in Switzerland, is alleged to have hidden the UBS.
UBS announces Occupation of
The Bank accepts in a statement shortly after the decision of the court of sent, “with the judgment absolutely.” You have denied in this case, throughout the investigation and throughout the process consistently to all criminal Offences.
The conviction was not supported by concrete evidence, but based on the unfounded accusations of former employees who had not been consulted in the process. The judgment also “evidence and a credible methodology” for the calculation of the fine and the damages are missing, according to UBS.
UBS will appeal against the judgment and consider whether the written decision required further steps. According to UBS, an appeal to the French legal procedures, the judgment of the court and leads to a referral of the case to the court of appeal, that it will negotiate in its entirety again.
The next instance of the court of cassation (Cour de cassation), which would roll up the case again. A new process is unlikely to begin before the year 2020.
The prosecution relied primarily on the testimony of former UBS employees, such as, for example, the former number two of the UBS France, Patrick de Fayet. This was known in advance guilty in the case of unauthorized contacts between Swiss UBS advisors and French customer helped.
the defense of The UBS noted, however, that the Prosecutor’s office has decided not to invite their witnesses to court, apparently out of fear that their statements to a closer examination would not withstand. In addition, the prosecution was able to present in the process no French customers, was recruited by a Swiss-UBS-Advisor.
Similar cases?
The Swiss subsidiary of British Bank HSBC was a case comparable to those of UBS, with a comparison out of the way. The Ex-employee Hervé Falciani had passed to Bank client data from HSBC Switzerland, the French tax authorities, which resulted in a criminal case of money laundering of evaded money. To avoid a process that took advantage of HSBC, the new French law has created the possibility of a comparison with a recognition of Guilt. In the Wake of the HSBC Switzerland paid an amount of 300 million euros.
tax dispute without end?
Also at stake in the proceedings in France. UBS wants to avoid a pattern of guilt that could bring countries such as Italy or Spain, the idea of the state coffers, with buses to fill. So far, has agreed UBS allegations of aiding tax evasion, as the First in the United States with the judiciary, and in 2009, a fine of $ 780 million paid. With the German justice, UBS agreed in 2014, a payment of 300 million euros. Since Germany is the much more important market for UBS, always France, and does not want to accept the big Bank to have in France a much higher fine to pay. (ali/SDA/AFP)
Created: 20.02.2019, 13:44 PM
