PARIS—A French court has found Swiss bank UBS guilty of illicit solicitation and laundering of the proceeds of tax fraud, imposing a hefty fine of €3.7 billion.
The bank was convicted of illegally helping wealthy French clients evade tax authorities in France, SwissInfo reported.
UBS, its French subsidiary and three of its former executives have also been ordered to pay civil damages of €800,000.
In a statement, the Swiss bank said it “strongly disagrees with the verdict" and plans to appeal the verdict. "The conviction is not supported by any concrete evidence, but instead is based on the unfounded allegations of former employees who were not even heard at the trial.”
The bank said the ruling "effectively applies French law in Switzerland" because, in UBS's opinion, the court heard no proof of crimes being committed in France.
The case concerns thousands of French citizens who moved funds to undeclared Swiss accounts to avoid taxes. The court found evidence that UBS provided services to conceal such fraudulent funds. France's national financial crimes unit estimates around €10 billion went unreported to French tax authorities, SwissInfo said, adding, the fine is “unprecedented” in France.