Wednesday, October 16, 2019
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UBS Gets Fined In Excess Of 5 Billion Dollar Due To Fraud Case

UBS Gets Fined In Excess Of 5 Billion Dollar Due To Fraud Case

UBS is faced up with a huge penalty on the financial front in France. This is after, a court in France gave the ruling that the Swiss bank had assisted their wealthy clients and thus help them to avoid paying taxes. On Wednesday, the court had delivered their judgment in Paris. They have ordered UBS to pay up an amount of $5.1 billion. Plus, the court has also found the bank, guilty of money laundering and providing solicitations to all those clients, which were totally illegal. The amount of fine includes 800 million Euro for damages to the civil society, meant to be paid to the French state.

The share prices in UBS had dropped quite sharply after this announcement was made, where they were trading at a low of 4.2% in Switzerland. The fines are more or less equivalent to the net profits of the Bank for the year 2018. The largest bank of Switzerland told that they would put out a statement very soon after the disclosure requirement, which is applicable. Earlier, the bank had said that the particular case did not have any substance, due to which one could get prosecuted.

The Bank had stated in their latest annual report that there is a belief, the amounts, which have been asked for, neither had any supportive evidence that was presented nor even had the support of the law. They further said that in addition to these, the relevant charges can be defended quite strongly by adopting legal means. On Wednesday, UBS said that they would make an appeal against the ruling given by the court. The prosecutors of France had even asked the court to impose bigger fines of 5.3 billion Euro, as the trial came to an end late last year.

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