UBS Ends French Tax Case with €835 Million Settlement

Key Takeaways

• UBS Settlement: The Swiss bank will pay €835 million ($895 million) to resolve a French case involving cross-border business from 2004–2012.
• Breakdown of Payment: The settlement includes €730 million in fines and €105 million in civil damages to the French state.
• Court Rulings: France’s Supreme Court confirmed UBS’s guilt in 2023 but ordered penalties to be reassessed, leading to the new resolution.

Deep Dive

UBS has put an end to a long-running French legal battle, agreeing to pay €835 million ($895 million) to settle charges tied to its cross-border business activities from 2004 to 2012.

The Swiss bank will pay €730 million in fines and €105 million in civil damages to the French state, closing a case that has hung over it for more than a decade. The agreement follows a 2023 ruling by France’s Supreme Court, which upheld findings of unlawful client solicitation and aggravated money laundering but ordered penalties to be reassessed by a lower court.

The case had been one of the most significant legal challenges facing UBS in Europe, reflecting years of scrutiny over how it sought and managed wealthy clients in France. The bank had consistently set aside provisions for the potential outcome, softening the financial blow of Tuesday’s settlement.

While UBS described the resolution as a way to move beyond “legacy matters,” the case demonstrates the risks global financial institutions continue to face when aggressive business practices cross legal and regulatory lines.

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