UBS France fined over tax evasion
UBS France has been fined 10m Euros for failing to implement adequate controls on tax evasion and money-laundering.
According to the BBC, UBS and its French subsidiary were being investigated for allegedly helping clients to open bank accounts in Switzerland which were not declared.
UBS was said to be suspected of setting up a shadow accounting system, whereby parallel accounts were opened in Switzerland but undeclared in France, in order to mask transfers between the accounts.
The banks were said to be suspected of “complicity in illegal sales practices" and "illicit solicitation”, which was against the law in France.
Former staff had alleged that bankers from the company had mixed with rich people at events such as music concerts and sporting events, some of which it sponsored, looking for possible clients for tax evasion.
French authorities were said to have warned the bank in 2007 to put its cross-border activity in order amid suspicion of illegal sales practices and tax evasion.
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