UBS France fined $13 million in laundering probe


UBS France is being fined 10 million euros ($13 million) after French authorities found the bank delayed tightening up controls to curb money laundering and cross-border fiscal fraud.

The French banking regulator, ACP, said Wednesday that UBS France was warned by autumn 2007 about inadequate procedures and did nothing for 18 months. The statement did not specify whether there had been any illicit activity.

French prosecutors are separately investigating UBS France – and three executives – for complicity in illegal business dealings.

In a statement, the Swiss bank said its French subsidiary has been under new leadership since 2012 “and has continuously strengthened its rules and processes.”

The bank said it was considering appealing the decision and has denied wrongdoing in the investigation.

The fine on UBS France comes amid heightened efforts by officials to crack down on tax evaders across Europe as the region’s governments struggle to cut debt and emerge from economic recession…

UBS, in particular, was in the spotlight earlier this year as one of the banks where France’s then-budget minister hid funds from tax authorities. Jerome Cahuzac, who stepped down amid the scandal, confessed earlier this year that he hid hundreds of thousands of euros in Swiss and Singaporean banks for decades.

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Press release by ACP: 26 juin 2013 –

La commission des sanctions de l’ACP sanctionne UBS France
Décision de la commission des sanctions n° 2012-03 du 25 juin 2013 à l’égard d’UBS (France) SA (risque de non-conformité)