The French case could have repercussions for UBS’s business beyond France. A U.S. rule prohibits banks convicted of certain crimes from managing pension funds unless they obtain a waiver from the Labor Department. These have become more difficult to obtain. The department, which oversees about $8 trillion in private-sector pensions, has faced unprecedented criticism over its granting of waivers to institutions found guilty of crimes.
After its conviction for helping Americans evade taxes in May 2014, Credit Suisse Group AG had to wait a year and a half before receiving a waiver. The bank oversees billions of dollars of assets for more than 100 U.S. pension plans, according to a 2015 court filing.
Belgium Probe
France is one of several countries where UBS has faced investigations in recent years over client tax evasion. In the latest probe, a judge in Belgium last month began an inquiry into whether UBS engaged in fraud, money laundering and other crimes to help wealthy individuals avoid taxes. UBS has denied wrongdoing.
In 2009, UBS paid $780 million to avoid prosecution in the U.S. for helping Americans hide money in Swiss bank accounts. It paid about 300 million euros in 2014 to settle a similar probe in the German state of North Rhine-Westphalia.