The French trial court on Wednesday found UBS AG and UBS (France) SA guilty of illicit solicitation and laundering the proceeds of tax fraud.
It assessed a penalty of EUR 3.7 billion and EUR 15 million respectively and civil damages of EUR 800 million, or about 4.5 billion euros ($5.1 billion) in total.
In response to the ruling, UBS said it ‘strongly disagrees’ with the verdict.
“UBS will appeal the verdict and evaluate whether the written decision requires any additional steps. Under French law, an appeal suspends the judgment of the trial court and leads to a transfer of the case to the Court of Appeals which then retries the case in its entirety,” the bank said in a statement.
The development in France comes years after UBS agreed to pay US authorities $780 million over tax evasion issues, as part of a 2009 deferred prosecution agreement under which it also agreed to provide the US government with the identities of certain United States customers of UBS’s cross-border business.
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