The major Swiss bank UBS has to pay 1.8 billion euros for illegal recruitment and aiding in money laundering in France.

That ruled on Monday an appeals court in Paris.

It largely confirmed the first instance judgment issued in February 2019, but significantly reduced the fine.

At that time, the judges had set 3.7 billion euros plus 800 million euros in damages, for a total of 4.5 billion euros.

Niklas Záboji

Business correspondent in Paris

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The appeals court reduced the fine to around 3.8 million euros, but ruled that the deposit of one billion euros deposited by UBS would be confiscated.

In addition, there are 800 million euros in damages.

The French subsidiary UBS France was sentenced to pay around 1.2 million euros for its involvement in the illegal business practices.

That is also significantly less than the 15 million euros set in the first instance.

UBS France was acquitted of the charge of involvement in money laundering.

Four executives were sentenced to heavy fines

The appeals court also sentenced only four of the six former UBS executives accused to suspended sentences of up to one year and fines of EUR 300,000.

In the first instance there were five managers.

"The bank takes note of this decision," said a UBS lawyer after the verdict was announced, which has not yet been received in writing.

He initially left it open whether they would appeal again.

"It is a criminal conviction and so we will make our decision very quickly," said the lawyer.

The UBS share rose by more than 2 percent on Monday afternoon, but fell again as the day progressed and was only slightly up shortly before the close of trading.

UBS and its former employees are accused of inciting wealthy clients in France to tax fraud in 2004 and 2012.

These are said to have been offered at receptions, sporting events and hunting parties to smuggle money past the French tax authorities.

The bank sent employees to France without a banking license.

Tax fraud is said to amount to up to 10 billion euros

There is talk of assets of around 10 billion euros to this day, but the court had to be content with estimates, as no evidence was available for the sums.

The investigation into the tax affair began after information from former employees of the bank.

UBS appealed the fine in the first instance.

She denies having committed a criminal offense, sees a lack of evidence and has called for an acquittal.

In addition to the deposited (interest-bearing) deposit, the institute has set aside 450 million euros for the case.

UBS is the largest asset manager in the world.

She has also been in a clinch with other countries on tax issues in recent years.

In Germany, the bank agreed in 2014 on a settlement that provided for the payment of around 300 million euros; in the USA, UBS had reached an agreement with the authorities in 2009 on 780 million dollars (around 690 million euros).