UBS France put under formal investigation

More bad weather for UBS: its French unit has been put under formal investigation in Paris Keystone

Swiss bank UBS’s French unit has been put under formal investigation in Paris for alleged complicity in suspected illegal business practices in France, a judicial source said.

UBS France is being investigated by the French judiciary on whether it offered potential French clients investments that were allegedly designed to evade taxes.

Three UBS France executives have already been put under investigation, which means under French law there is serious or consistent evidence pointing to implication of a suspect in a crime.

The judicial source, who spoke on condition of anonymity, said an administrator has been designated to look into the bank’s business practices and how bonuses are given out.

UBS France CEO Jean-Frédéric de Leusse was recently questioned by judges who had to decide whether to formally place the bank under investigation.

Cash-strapped governments around the world are cracking down on tax evasion and money laundering in the wake of the financial crisis.

The issue took on particular importance in France after former budget minister Jérôme Cahuzac quit over allegations that he had an undeclared Swiss bank account, which he later acknowledged.