The bank has ran its own internal investigation and found no evidence of wrongdoing but prosecutors are still going to take a look-see themselves.

The investigation, being conducted by economic-crimes prosecutors in Mannheim, was started in March against unnamed employees after a tax inquiry in the southwestern state of Baden Wuerttemberg identified suspicious transfers of funds from Germany to Switzerland, allegedly executed by a German taxpayer with the assistance of the Frankfurt-based office of UBS Deutschland AG…In May, prosecutors seized more than 100,000 computer files and other records during a search of the bank’s Frankfurt office, Mr. Lintz said. Tax investigators are assessing this material to identify evidence that bank officials acted as accessories to tax evasion, he said.

In its statement, UBS Deutschland said that “an internal investigation into the specific allegations has not identified any evidence of misbehavior by UBS Deutschland AG.” It said it is cooperating with the criminal investigation. Several investigations of UBS clients in Germany are under way by local prosecutors independent of the Mannheim investigation, Mr. Lintz said. He declined to say how many clients are under investigation. A report in the Thursday edition of German newspaper Stuttgarter Nachrichten said thousands of bank clients are under investigation. Mr. Lintz declined to confirm that figure.

Germany Probes UBS Staff on Tax-Evasion Allegations [WSJ]

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Comments (4)

  1. Posted by Texashedge | November 8, 2012 at 5:43 PM

    The Swiss helping the Germans hide money under shady circumstances? I don't believe it.

  2. Posted by Guest | November 8, 2012 at 6:39 PM

    This is how the Swiss repay the Germans? Kids these days.

  3. Posted by der Gast | November 8, 2012 at 10:10 PM

    Through a serious of discreet trades, we'll move your money over to our Swiss headquarters, making your German balance zero, which means you won't pay taxes. But don't worry, your money's still there. Promise. It's just invisible.

    On a completely unrelated note, we have managed to meet our tier one capital requirements ahead of schedule! We'll be rewarding our management by unclawing-back previously clawed-back bonuses in the form of stock vesting in 2036, with an attached claw-back.

    - UBS Consolidated Wealth Management/ Compensation Committee/ Junior Trader/ 4th Floor Custodian

  4. Posted by guest | November 9, 2012 at 3:22 AM

    What, they couldn't take their money and come for strudel and a coffee in Paradeplatz ?