UBS guilty of money laundering, must pay €4.5B fine

Wednesday, 20. February 2019 14:21

UBS Group AG was found guilty of laundering the proceeds of tax evasion by a court in Paris on Wednesday. The Swiss banking giant will have to pay a €3.7 billion fine for its violations, as well as to compensate the French state €800 million in damages.

The authorities determined the bank kept more than €10 billion from the tax officials from 2004 to 2014. The National Financial Prosecutor stated UBS was "perfectly aware that it was breaking the French law" by soliciting clients and unlawfully assisting them to evade taxes.

UBS, which has vehemently denied any wrongdoing, set aside $2.46 billion to cover potential regulatory requirements and losses from litigation. The company said it will issue a statement as soon as the court hearing is completed.

The bank recently reported its earnings for the whole fiscal 2018. Its stock fell 3.70% at 2:24 pm CET, following the ruling.

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Author:
Breaking the News / MD