An investigation into whether Zurich-based UBS had been aiding German clients evade taxes ended on Tuesday with a $403 million settlement, the largest fine ever paid to a country by a Swiss lender. While the Swiss lender was able to put to rest allegations in Germany, it is still likely to face challenges elsewhere.
French and Belgian authorities also suspect the Swiss lender of aiding account holders in both countries of hiding their money from domestic tax authorities.
UBS has been able to hold off a trial in the US involving its role in helping American clients avoid taxes by paying a $780 million fine in an out-of-court settlement.
In spite of the international trouble, UBS reported a 15-percent net profit jump in the second quarter, compared to its earnings in the same period a year earlier. The company claims the spike was driven by strong results from its core wealth management and trimmed-down investment banking franchise.
Source: "Swiss UBS pays millions to Germany in settlement over tax evasion," DW, July 27th, 2014