Bloomberg News reports that the Swiss bank is set to learn from a Paris appeals court on September 22 if it must post a $1.4bn bond to cover a potential criminal penalty for alleged money laundering. Its French unit already paid a $12.9m fine for lax controls that may have enabled tax dodging.
The bail corresponds to as much as half the estimated funds UBS allegedly laundered, a rationale that was laid out in an eight-page judicial order in July, said two people familiar with the document who requested anonymity because it isn’t public. French investigators are also looking into whether HSBC units encouraged tax evasion. No charges have been filed in that case.
The bail demand 'is completely new and a very strong signal' of France’s tougher approach, said Eric Vernier, a researcher specializing in tax fraud at the Paris-based Institut de Relations Internationales et Strategiques
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