French authorities have placed Swiss banking giant UBS under formal investigation for alleged witness tampering following a complaint filed by a former employee against the bank.
The prosecutors said that UBS France is suspected of trying to silence a whistle-blower who was behind revelations of alleged tax fraud by the bank.
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The investigation is looking at whether Nicolas Forissier, a former UBS audit manager, was pressured by the bank after he alerted his management and French authorities about the bank’s alleged practices.
UBS said that a judge in France had decided to put the bank under formal examination for potentially interfering with a witness but not for moral harassment, another accusation by the former employee who made the complaint.
The French unit was also designated an assisted witness, a status between a full witness and being under formal investigation, on a charge of moral harassment.
The bank added it strongly denies the allegations of interfering with the witness and is confident that the bank can vigorously defend its rights and position.
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By GlobalData"We look forward to the opportunity to respond to unfounded allegations," the bank added in an e-mailed statement.
The legal action comes less than two weeks after judges in France wrapped up a 19-month investigation into whether the bank helped French clients evade funds between 2004 and 2012.
Recently, Belgian authorities have charged UBS with money laundering and serious and organized tax fraud.
