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BERLIN (Reuters) - Swiss bank UBS's UBSN.VX German subsidiary is being investigated by local prosecutors for allegedly aiding and abetting tax fraud, Stuttgarter Nachrichten reported on Thursday, citing a spokesman for the Mannheim Prosecutor's office.
"Members of the bank's staff are supposed to have helped investors to transfer money past revenue departments into Switzerland," the newspaper quoted Peter Lintz, spokesman for Mannheim prosecutors as saying.
Funds have been moved illicitly via an internal clearing account at UBS's German branch into Switzerland, the newspaper said, without citing the source of the information. Illicit money transfers reached well into 2012, it said.
Mannheim prosecutors confiscated hundreds of thousands of data records during a raid in May of UBS's Frankfurt-based German headquarters, Stuttgarter Nachrichten said.
The legal inquiry is directed against unknown representatives of UBS's German division, the newspaper quoted Lintz as saying, adding that some of the bank's customers are also among targets.
A spokeswoman for UBS said in an emailed statement late on Wednesday that the bank is "cooperating with authorities", though declined to comment on ongoing legal procedures.
Since 2009, UBS has closely examined "framework conditions" for business with over 60 countries including Germany and taken steps to adjust or improve the rules wherever necessary, the spokeswoman said.
Reporting By Andreas Cremer; Additional Reporting by Edward Taylor in Frankfurt; Editing by Andrew Hay