Julius Baer is cooperating in a French investigation into suspected money laundering and tax fraud by a former client involved in the European carbon allowances market, a spokeswoman said, following French media reports.
Reuters reports that news agency AFP said last week the bank is suspected of receiving funds in a Swiss account that were linked to value-added tax (VAT) fraud in the EU Emissions Trading System, and of failing to perform adequate client checks.
Julius Baer had referred to the investigation in its half-year report on July 21 but had not said it concerned the carbon market.
'In the context of an investigation against a former client regarding alleged participation in a tax fraud in France, a formal procedure into suspected lack of due diligence in financial transactions has been initiated against (the bank) in June 2014,' the bank said.
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