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Author: Brenna Hughes Neghaiwi
ZURICH (Reuters) – French judges on Monday will decide whether to cancel a fine of 4.5 billion euros ($ 5.1 billion) against the Swiss bank UBS for allegedly helping wealthy clients store undeclared assets at sea.
The case is being watched by banks to see if it indicates a tough European stance. Fines related to tax and other crimes in Europe have been lower than in the United States in the past, but the size of the UBS penalty has been an exception.
The Paris Court of Appeal will decide whether to uphold or adjust the sentence imposed on the largest Swiss lender imposed after the initial trial in 2019.
UBS has filed an appeal against the verdict, claiming that it was illegal to sue customers at French sporting events and parties and to launder the proceeds of tax fraud.
UBS’s lawyers argued in the appeals trial that, although the plaintiffs appeared, the investigators never found clear evidence of systematic attempts to examine French clients by UBS commercial specialists.
The bank wants to drop the charges. He also said the fine imposed was disproportionate.
The appellate prosecutor said he would demand a fine of at least 2 trillion euros, while the French state is seeking $ 1 trillion in compensation, bringing the total to 3,000 billion euros.
The bank has set aside 450 million euros to cover any penalties in the case.
The decision of the appellate court was postponed from September due to the poor health of one of the magistrates. Any further judgment in the case may be appealed to the French Supreme Court.
The French lawsuit brought an extraordinary fine to Europe. By comparison, UBS settled its Belgian tax fraud case in November, with a fine of 49 million euros.
In Switzerland, the 2019 UBS case in France set a precedent for Swiss governments to seek information from foreign banks, even though they said that information was limited to prosecuting tax evaders and not for use against the bank itself.
($ 1 = $ 0.8866)
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