Decision by the French Court of Appeal

Rhea-AI Summary

UBS (NYSE: UBS) has been found guilty by the French Court of Appeal for unlawful solicitation and aggravated laundering of proceeds from tax fraud between 2004 and 2012. A fine of EUR 3.75 million was imposed, significantly lower than the initial EUR 3.7 billion. Additionally, a confiscation of EUR 1 billion and civil damages of EUR 800 million to the French state were ordered. UBS (France) SA faced a fine of EUR 1.875 million. UBS plans to review the ruling and may appeal.

Positive

• Court reduced initial fine from EUR 3.7 billion to EUR 3.75 million.
• UBS (France) SA acquitted of aiding and abetting laundering charges.

Negative

• Court found UBS guilty of unlawful solicitation.
• Significant civil damages of EUR 800 million awarded to the French state.
• Total financial penalties amounting to EUR 1.875 million for UBS (France) SA.

ZURICH--(BUSINESS WIRE)-- Regulatory News:

Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules

UBS (NYSE:UBS) (SWX:UBSN) takes note of the French Court of Appeal’s decision.

UBS AG was found guilty of unlawful solicitation and aggravated laundering of the proceeds of tax fraud relating to the bank’s cross-border business activities in France between 2004 and 2012. The court imposed a fine of EUR 3.75m as opposed to EUR 3.7bn in the first instance.

In addition, the court has ordered the confiscation of EUR 1bn. The court also awarded civil damages to the French state of EUR 800m, unchanged from the first instance. The award of civil damages will be payable upon request by the French state.

UBS (France) SA was acquitted on charges of aiding and abetting of laundering the proceeds of tax fraud and was found guilty of aiding and abetting of unlawful solicitation. The court has ordered a fine of EUR 1.875m.

The fines imposed on UBS AG and UBS France S.A. would be suspended if the decision is appealed.

UBS will review the decision and consider all options, including appeal.

Notice to investors

This document and the information contained herein is provided solely for information purposes, and is not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS Group AG, UBS AG or their affiliates should be made on the basis of this document. For additional information, refer to the documents furnished by or filed with the United States Securities and Exchange Commission, including the Form 20-F for the year ended 31 December 2020. These reports are available at www.ubs.com/investors.

Cautionary statement regarding forward-looking statements

This document contains statements that constitute forward-looking statements. While these statements represent UBS’s judgments and expectations concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS’s expectations. Additional information about those factors is set forth in documents furnished and filings made by UBS with the US Securities and Exchange Commission, including the second and third quarter 2021 reports and the Annual Report on Form 20-F for the year ended 31 December 2020. UBS undertakes no obligation to update the information contained herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211213005737/en/

UBS Group AG and UBS AG

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Source: UBS AG

FAQ

What was the French Court's decision regarding UBS in 2023?

The French Court of Appeal found UBS guilty of unlawful solicitation and aggravated laundering of tax fraud proceeds, imposing a fine of EUR 3.75 million.

How much did UBS have to pay in civil damages to the French state?

UBS was ordered to pay civil damages of EUR 800 million to the French state.

Was UBS (France) SA found guilty of any charges?

UBS (France) SA was found guilty of aiding and abetting unlawful solicitation but was acquitted of laundering charges.

What are UBS's next steps following the court ruling?

UBS plans to review the court's decision and consider all options, including an appeal.

What were the initial fines proposed to UBS before the appeal?

UBS was initially fined EUR 3.7 billion, which was reduced to EUR 3.75 million upon appeal.