Swiss bank UBS AG had been found guilty of illegally soliciting their clients and evading the taxes by a French Court on Wednesday, the 20th of February, 2019, as the French court had ordered the Swiss bank to pay $5.1 billion (4.5 billion euros) as a penalty.
Christine Mee, president of the French Court said in her ruling, “The court can only conclude that (UBS) consistently put its own financial interests over the sovereign rights of the French state. Hence, the crimes are exceptionally serious.
” Following the release of court ruling on Wednesday (February 20th), the share prices of UBS AG had drowned as much as 2.69 percent to 12.50 Swiss Franc, listed in SWX, at the evening trading session. Nevertheless, the UBS AG had denied any kind of wrongdoing and said that they would soon be launching an appeal.
The case was a verecund application of how French courts are taking a hard line against financial misconducts, tax frauds and persuading the clients on offers which would benefit the financial institutions, alongside helping them to evade taxes.
As the trial had been heavily criticized by the European bankers, a banking law professor, Thierry Bonneau of Paris Pantheon Asses University said, “This is a clear signal to all financial intermediaries: you will be punished severely if you don’t behave. They will have to be excessively prudent on all these questions of tax fraud. ”