French court more than halves fine against UBS in tax evasion case to 1.8 billion euros By Reuters

PARIS (Reuters) -A Paris appeals court on Monday slashed the penalty UBS must pay for allegedly helping wealthy clients in France evade taxes to 1.8 billion euros ($2.03 billion), but upheld that the Swiss bank was guilty of both promoting illegal banking services and money laundering.

The 1.8 billion euro penalty awarded on Monday compares with an overall fine of 4.5 billion euros imposed against the bank after a first trial in 2019.

UBS said it would decide quickly on whether to appeal against the ruling.

“The bank takes note of this decision,” Herve Temime, a lawyer representing the bank said after the verdict.

“Compared to the first instance ruling, there is a financial gain of 2.7 billion euros, but it is a criminal conviction and therefore we will make our decision very quickly.”

The court found UBS guilty of soliciting clients illegally at sporting events and parties in France, and of laundering the proceeds of tax evasion.

Lawyers for UBS had argued in the appeals trial that despite whistleblowers coming forward, investigators had never found clear evidence of systematic attempts by UBS commercial specialists to canvass French customers, including at client events like cocktail parties and hunts.

It had also argued that the original fine was disproportionate.

Fines in Europe for tax-related and other offences have historically been lower than in the United States, with the UBS case marking an exception that has been closely watched by other banks.

($1 = 0.8865 euros)