The Court of Appeal expected on the fine of 4.5 billion euros imposed on UBS – archyde

PARIS (Reuters) – The Paris Court of Appeal will deliver its decision on Monday on appeal by Swiss bank UBS against its condemnation by France to pay 4.5 billion euros for illicit bank directing and laundering of aggravated tax fraud .

The case is being followed closely by the banking sector which fears a toughening of tone in Europe, where the fines imposed have in the past been less severe than in the United States – the conviction of UBS having served as an exception.

The Swiss establishment was sentenced in February 2019 to a record and unprecedented fine of 3.7 billion euros and to pay 800 million in damages to the State, civil party, for having encouraged wealthy French clients to open accounts in Switzerland without the knowledge of the tax authorities between 2004 and 2012.

During the appeal trial held last March, UBS notably challenged the charge of laundering tax fraud, its lawyer, Hervé Temime, citing an “illicit canvassing that went wrong” but contesting a systemic desire to promote ‘tax evasion.

The public prosecutor’s office asked for a fine of two billion euros (against 3.7 billion at first instance) and the State one billion euros in damages (against 800 million).

If the judges confirm the guilt of UBS and follow these requisitions, the Swiss bank could therefore have to pay “only” three billion euros.

UBS has spent a provision of 450 million euros to cover a possible fine in this case.

The fine imposed at first instance on the bank is unusually high in Europe. In comparison, UBS settled in November a tax evasion case in Belgium for which it was fined 49 million euros.

(Report Brenna Hughes Neghaiwi and Tangi Salaun, Blandine Hénault for the French version, edited by Jean Terzian)