UBS Tax Evasion Inquiry in France Draws in Swiss Parent Bank: Paris Prosecutors.
Swiss bank UBS AG (
UBS Ulaanbaatar Broadcasting System
) has come under investigation from
French authorities on suspicions that it helped its French subsidiary,
UBS France, illegally sell secret offshore banking accounts to French
Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
(http://dealbook.nytimes.com/2013/06/07/ubs-under-investigation-for-tax-evasion-in-france/?partner=rss&emc=rss) reports .
The development comes after French prosecutors started
investigating UBS France last week.
They sought to determine whether the French bank helped UBS
employees from Switzerland approach French clients with the promise of
tax dodging Swiss bank accounts, as the
(http://online.wsj.com/article/SB10001424127887324063304578521142382928544.html) Wall Street Journal first reported.
In France, only French-registered entities can sign up bank
customers, so Swiss agents seeking clients is considered a form of
The Swiss UBS was also identified as an ‘assisted
witness’, in a separate ongoing investigation into tax evasion and
money laundering, Agnes Thibault-Lecuivre, a spokeswoman for Paris
prosecutors, said to the New York Times.
Zurich-based UBS spokesman Yves Kaufmann Lobato told the New York
Times: “We will continue working with the authorities in France
within the applicable legal framework to arrive at a resolution to this
According to (http://www.reuters.com/article/2013/06/07/us-ubs-france-idUSBRE9560DU20130607) Reuters , UBS France
Leusse was questioned by prosecutors last week.
The bank stopped providing offshore banking services to U.S.
residents in 2008, after investigations from the U.S. Department of
Justice and the Securities and Exchange Commission, according to
(http://www.ubs.com/global/en/about_ubs/about_us/news/news.html/en/2008/07/17/2008_07_17.html) testimony before a U.S. Senate subcommittee.
UBS executive Raoul Weil, who led UBS Wealth Management
International from 2002 to 2007, was
(http://www.ubs.com/global/en/about_ubs/about_us/news/news.html/en/2008/11/12/2008_11_12.html) indicted in 2008 in connection with UBS’
UBS also (http://www.ubs.com/global/en/about_ubs/about_us/news/news.html/en/2012/12/19/20121219a.html) settled allegations related to
See London interbank offered rate (LIBOR).
investigations conducted by U.S., U.K. and Swiss authorities in December
2012, paying $1.5 billion and admitting to one count of wire fraud, for
manipulating benchmark interest rates.