UBS under formal investigation in France over tax evasion

French authorities are formally investigating UBS for allegedly helping wealthy clients open undeclared bank accounts in Switzerland.

The Swiss bank is suspected of "complicity in illegal sales practices and It also allegedly set up a shadow accounting system that masked transfers between French and Swiss bank accounts.

Under French law, being placed under official investigation means there is "serious or consistent" evidence to implicate a suspect in a crime. But it does not necessarily lead to a trial, the official said.

The latest move follows action taken against the bank's French unit last week which was also formally placed under scrutiny on similar suspicions.