BBC News, 7
June 2013
Big Banking
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UBS and its French branch are suspected of helping rich clients set up illegal accounts in Switzerland |
The Swiss
bank is suspected of "complicity in illegal sales practices", an
official at the Paris prosecutor's office told the BBC.
It also
allegedly set up a shadow accounting system that masked transfers between
French and Swiss bank accounts.
UBS said it
was cooperating with authorities.
Under
French law being placed under official investigation means there is
"serious or consistent" evidence to implicate a suspect in a crime.
But it does not necessarily lead to a trial, the official said.
The latest
move follows action taken against the bank's French unit last week which was
also formally placed under investigation.
Whistle-blower
The
allegations came to light after former UBS employees blew the whistle on the
alleged practices.
The former
head of UBS France, Patrick de Fayet, and two other local branch executives
have already been placed under investigation.
UBS said:
"We will continue working with the authorities in France within the
applicable legal framework to arrive at a resolution to this matter."
In a
separate statement in French, it said: "The tribunal's decision widens the
probe. UBS will continue to cooperate with the French authorities. UBS will not
allow any move aimed at helping clients to avoid their fiscal duties."
The alleged
offences are believed to have taken place between 2002-2007 and involve
individuals and companies.
Anonymous
letter
The
magistrates investigating the affair have sent a list containing the names of
353 people suspected of having held a Swiss account to Swiss authorities and
have requested details, the official at the prosecutor's office told the BBC.
An
anonymous letter had been sent to the regulatory arm of the French central bank
suggesting that parallel accounts were opened in Switzerland but that were not
declared in France, the AFP news agency reported.
UBS was
separately also given the status of "supervised witness" on two other
allegations related to money laundering and tax evasion, the prosecutor's
office said.
Supervised
witness means that a person must be accompanied by his or her lawyer if
questioned further in the investigation.
The latest
investigation came two months after former French budget minister Jerome
Cahuzac resigned after admitting he had squirreled away savings in an
undeclared Swiss bank account. His ministry was responsible for tackling
tax evasion.
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