PARIS — French authorities are formally investigating whether UBS France helped clients evade the country’s tax authorities, the Paris prosecutor’s office said Monday.
Spokeswoman Agnes Thibault-Lecuivre said that the subsidiary of the Swiss bank is being investigated for complicity in illegal business dealings. Three executives at the French subsidiary are already under investigation.
UBS said it had been expecting this step as part of the ongoing investigation and is fully cooperating with French authorities. It denied any wrongdoing, saying it complies fully with French law.
France is one of many countries — all under pressure to scrounge up extra cash as they tighten their budgets — that is raising the pressure on tax evaders and avoiders. The European Union is leading a charge to crack down on accounts that hide money from governments, and the Group of 20 leading industrial and developing nations has pledged to rein in tax avoidance.
Switzerland’s banks, known for their secrecy, have long been suspected of being used to hide money from tax authorities. The Alpine country has been pressured in recent years, however, into negotiating some tax treaties with the United States, Germany, and others.