UBS is in for a tricky time in France, facing a lawsuit based on allegations it helped clients defraud tax authorities. The question is why the company is spending so much money on maintaining its business in the country.

The tax dispute between the French judiciary and Switzerland’s largest bank is already in its fifth year – starting October 8 the story will reach its nadir, when the company’s is being tried in Paris. The French accuse UBS of having helped its clients avoid paying taxes from 2004 through 2012. The bank also stands accused on charges of money laundering.

If found guilty as charged, UBS may reportedly be fined as much as 6 billion Swiss francs. The bank has paid a deposit of 1.1 billion euros.

Brisk Business in France

Despite this potentially disastrous outcome, the business in the neighboring country is developing fine, as Jean-Frédéric de Leusse (pictured below) told «L’Agéfi» newspaper in France. The country head for France said that business had been strong and profitable since he took over in 2012, shortly before the scandal broke.

deLeusse 500

«When I started, UBS France managed 8 billion euros. Now, it is 17 billion euros,» de Leusse said. The former Crédit Agricole banker wants to spend 15 million euros on digitization and on measure to simplify services.

Recent Acquisition

The unit employs some 380 members of staff, both in wealth management and in investment banking. The latter business underwent a complete makeover under the guidance of de Leusse.

The Swiss bank recently acquired 49 percent of the joint venture UBS La Maison. The joint venture was the product of a takeover of Banque Leonardo and the cooperation with La Maison, a club of millionaires.

And a Bit of Speculation

De Leusse now is hoping to turn the joint venture into a nice wealth management business, as he told «L’Agéfi».

UBS La Maison may however offer something else to its mothership, the newspaper speculated: should UBS face the most serious of sanctions in Paris, UBS La Maison could provide a safe way out for the company.