Swiss banking giant UBS has agreed to pay a $145 million penalty to settle allegations of money-laundering violations in the United States.
The settlement includes a $125 million civil fine, which authorities have described as the largest civil penalty ever imposed on a securities firm for such breaches.
The fine represents a significant regulatory hit for the Zurich-based lender, arriving shortly after the bank reported a robust second-quarter pre-tax profit of $36 billion.
The remaining $20 million covers disgorgement of ill-gotten gains and interest.
The fine represents a significant regulatory hit for the Zurich-based lender, arriving shortly after the bank reported a robust second-quarter pre-tax profit of $36 billion.
While the penalty is material, it is unlikely to derail the bank's overall financial trajectory, given the scale of its recent earnings and its newly announced share repurchase program.
However, the settlement underscores the persistent compliance risks facing global banks with extensive US operations.