UBS lost dispute over French case at Strasbourg court

Swiss bank UBS has failed to persuade the European Court of Human Rights (ECHR) to overturn an order that it must post €1.1 billion bail in a French case about whether it helped clients avoid tax.

UBS had argued before the ECHR that the record-setting bond, a guarantee against an eventual fine upon conviction, violated its right to the presumption of innocence and it took the unusual step of going to the human rights court in 2015.

The Strasbourg court said on Thursday it had unanimously rejected UBS's application to challenge the order.

"The Court held that the security required constituted an interim measure which did not prejudge the outcome of the proceedings and that the amount had been assessed by the domestic judges," the ECHR said in a statement, adding that the decision is final.

French investigators have sought a fine of up to 4.88 billion euros, the ECHR said.

In June last year, French prosecutors recommended that UBS face trial for "aggravated laundering of tax fraud proceeds" while its French branch be judged for complicity in these crimes.

UBS said in a statement it would "continue to strive for a solution to the proceedings in France while strongly defending our position". "The facts do not support the magnitude of the bail and we have a fiduciary responsibility to protect both the financial and reputational interests of our stakeholders. We regret the court's decision and disagree with its reasoning," it said.