Lawsuit abroad to which the Bank is a party
With the public disclosures dated 14.08.2015, 12.10.2015, 11.12.2015, 11.02.2016, 11.04.2016, 10.06.2016, 10.08.2016, 10.10.2016, 12.12.2016, 13.02.2017, 13.04.2017, 14.06.2017 and 14.08.2017.
We refer to the litigation matter that was previously disclosed by our Bank relating to tax carbon-trading fraud allegations against a number of individuals pending before the Tribunal De Grande Instance of Paris. In this matter our Bank was accused of assisting the organizers of this fraud by letting them benefit from the banking services. In its decision the Tribunal found our Bank not guilty for the activities of the Bank in 2008 and early 2009 given its compliance with know your customer rules and account opening processes. However, the Court decided to impose a fine of Euro 8 million with respect to account closure actions taken by our Bank in mid-2009 without taking into account the applicable local laws and regulations.
In addition, the French Treasury asked for civil damages from all of the defendants of this litigation matter for the tax losses suffered. Accordingly, the Bank, jointly with the other defendants, will be subject to payment of a damages claim of the French Treasury up to Euro 25 million.
The Bank disagrees with the judgment and currently intends to file an appeal . The Management believes that the Bank has complied with all aspects of the applicable laws and has no wrong doing in this matter. The Management believes that the decision should be overruled at the appellate court level since there is no basis for the penalty and the damages.