UBS Under Fire: Money Laundering and Tax Fraud Investigation by Belgian Prosecutors

Swiss banking giant, UBS, is under investigation by Belgian authorities for allegations of money laundering and organized tax fraud.

Allegations against UBS

The Belgian prosecutor’s office accused UBS of encouraging Belgian clients to create tax-evasion structures without using its Belgian subsidiary as an intermediary. UBS, the world’s largest wealth manager, responded by releasing a statement defending itself against these unfounded allegations.

Collaboration between Belgian and French Judiciaries

This investigation follows close collaboration between the Belgian and French judiciaries. French authorities had been investigating claims that UBS had been helping clients open accounts in Switzerland to evade taxes between 2004 and 2012. There are also ongoing investigations by US authorities, who are examining whether the bank enabled its American customers to conceal their wealth from the IRS and avoid paying their full tax obligations.

Previous Investigations and Raids

In 2014, Belgian police conducted raids on UBS and the homes of its Belgium CEO, Marcel Bruehwiler, and a client. Bruehwiler was charged during the raids, while UBS flatly denied any involvement in tax evasion by its Belgian division. Since then, UBS’s small Belgian subsidiary, employing approximately 60 staff including 20 private bankers, has been sold to Belgian private bank Puilaetco Dewaay.

UBS’s Response

Despite the accusations, UBS has steadfastly maintained its innocence. In its statement, the bank emphasized its commitment to preventing tax evasion and money laundering practices. UBS pledged cooperation with the Belgian authorities and expressed confidence in the outcome of the investigation.

Ongoing Probes into the Banking Industry

This investigation marks the latest in a long line of probes into misconduct within the banking industry. The investigations highlight the growing scrutiny of international banking practices and the need for greater transparency and accountability. As the investigation unfolds, more details are expected to emerge about the nature of UBS’s alleged involvement in tax evasion and money laundering schemes.

Timeline of Events

• 2004-2012: UBS helped Belgian clients open accounts in Switzerland to evade taxes.
• 2014: Belgian police conducted raids on UBS and the homes of its Belgium CEO, Marcel Bruehwiler, and a client. Bruehwiler was charged, and UBS denied any involvement in tax evasion by its Belgian division.
• 2016: UBS’s small Belgian subsidiary is sold to Belgian private bank Puilaetco Dewaay.
• Ongoing: Investigations by Belgian, French, and US authorities into UBS’s conduct.