Economy News

UBS: Appeal decision postponed to December 13

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As of Monday, the Paris Court of Appeal has postponed its decision on UBS. The Swiss bank charges include aggravated tax laundering and illegal canvassing in France between 2004 and 2012.

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The €3.7 billion fine imposed in February 2019 was the largest tax evasion penalty ever imposed in France.

In addition, the French state ordered the world’s largest wealth manager to pay the French state €800 million in damages.

After a second trial in March, the three-key bank appealed. The decision was expected on Monday.

Due to the sick leave of one of three judges on the bench, the court’s president, François Reygrobellet, was unable to finalize a decision.

Between 2004 and 2012, UBS apparently sent some sales representatives to France to lure rich clients of its subsidiary to open undeclared accounts in Switzerland during receptions, sporting events, and concerts.

UBS France appeared as an accomplice, along with six former executives. During the appeal trial, the prosecution proposed a fine of two billion euros, well below the original sanction.

A large scale case

In between the two trials, the Court of Cassation, France’s highest court, issued several rulings that could have altered the sentence imposed on UBS.

The public prosecutor’s office requested confirmation of the $17.5 million for UBS France, along with suspended prison sentences and fines for six of the former executives. One of which was acquitted in the meantime.

According to the bank’s defense, UBS has complied with all legal requirements at the time. The French state, the civil party, has asked for one billion euros in damages.

Thousands of UBS clients sorted out their situation between December 2015 and December 2016. A specialized unit established at the French Ministry of the Economy supposedly recovered 3.7 billion out of around 10 billion in hidden assets, according to the prosecution.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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