UBS's French subsidiary is facing legal scrutiny in Paris over allegations of harassing two whistleblowers who raised concerns about the bank's tax evasion practices.
The public prosecutor has requested a maximum fine of 225,000 euros against the subsidiary. The case has drawn attention to the broader issues of whistleblower protection in the financial sector. The Paris Criminal Court is expected to deliver its decision on March 10, 2025.
The defense for UBS's French branch has called for an acquittal, arguing for a "dispassionate debate" on the matter. This case follows UBS AG and its French subsidiary being convicted for establishing a tax evasion system in Switzerland. The prosecutor has expressed disbelief at UBS's denial of the allegations and raised concerns about the effectiveness of the requested fine as a deterrent.
The lawyer representing one of the whistleblowers has characterized the case as "unprecedented" and emphasized the need to recognize and protect whistleblowers. The defense argues that the bank's actions were driven by objective circumstances during the 2008 financial crisis. The ongoing legal battle highlights the challenges faced by whistleblowers and the need for robust mechanisms to protect them.
The outcome of this case could have far-reaching implications for corporate governance and whistleblower treatment in the financial industry.