Swiss
banking giant UBS has agreed to pay Germany a hefty fine for its involvement in
helping German clients hide money from tax authorities. It's the biggest fine
ever paid to the country by a Swiss lender.
Zurich-based
UBS confirmed Tuesday it had settled investigation charges of aiding German
clients suspected of evading taxes.
Switzerland's largest lender agreed with prosecutors in Bochum, Germany, to pay a fine of
some 300 million euros ($403 million). The payment will put the case to rest in
Germany, but UBS continues to face similar punitive action elsewhere.
The Swiss
lender also stands accused of aiding account holders from France and Belgium in
hiding their money from domestic tax authorities.
Little
impact on earnings
As early as
2009, UBS was able to ward off a trial in the US over its role in helping
clients avoid taxes by paying a fine of $780 million in an out-of-court
settlement.
Despite
continued litigation costs, the lender on Tuesday reported a 15-percent net
profit jump in the second quarter, compared to its earnings in the same period
a year earlier.
UBS said
the hike was driven by strong results from its core wealth management and
trimmed-down investment banking franchises.
hg/ng (Reuters, AFP, dpa)
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