UBS has reached a provisional agreement with prosecutors in Italy to pay a three million euros penalty in connection with cross-border asset hiding involving money being moved to Switzerland from France and Italy.

The deal has been approved by prosecutors in Milan and will go before a judge for confirmation this autumn, according to sources. In June UBS settled a separate case in Italy for 101 million euros.

A share of one million euros each will be paid by parent company UBS AG, UBS Switzerland and UBS Monaco, according to sources cited by Reuters news agency.

As a result of the agreed penalty neither the banks nor bank officials will face criminal charges. A deposit of 10 million euros made by UBS into a court’s bank account in Milan is likely to be confiscated in relation to profits made by the Swiss bank on the cross-border asset transfers.

Meanwhile, UBS is fighting a 4.5 billion euros penalty for alleged tax evasion in France.

PHOTO: UBS headquarters in Zurich