The famous Swiss bank UBS had been charged a fine of €3.7bn (₤3.2bn or $4.2bn) in a tax fraud case by the French. It was found that between the years 2004-2012, the bank had made illicit moves to help the French clients to hide billions of Euros from the tax authorities. Apart from the fine of €3.7bn, they were also asked to pay damages to the French state, an amount of €800mn. However UBS had said that they would file an appeal against the verdict.
UBS reported to have made net profit of $4.9bn (₤3.8bn or €4.3bn). Also a $2.46bn was set aside by the company to cover losses from legal action and its further proceedings.
Similar such cases were reported in 2009 and 2014 in US and Germany respectively where the company had to pay $780m in the US and €300m as fine in Germany.
The court has been told by the prosecutors that the bank was keeping a blind eye on its tax evaders and that laundering from the tax fraud was done on an industrial scale. They also said that UBS had sent its bankers to concerts and sports events with an aim to solicit their clients.
The investigation following the court ruling will take about seven years to complete. However UBS has expressed its strong disagreement on the judgment.
Throughout the investigation and the trials, the bank had opposed the judgment saying it had nothing to play in this wrongdoing. They said that the verdict was based on some accusations made by former employees who were not even heard during the trial and had otherwise no strong base to support it. They further claimed that there had been no evidence of any French client being solicited by any UBS agent so far for opening account in Switzerland.