French authorities have told the head of Swiss private bank Reyl & Cie, Francois Reyl, not to leave France after expanding an investigation into possible tax evasion.

French authorities have told the head of Swiss private bank
Reyl & Cie, Francois Reyl, not to leave France after expanding an
investigation into possible tax evasion, according to Reuters.

Francois Reyl and his father Dominique, Reyl & Cie's
chairman, were put under formal investigation in October on suspicion that the
bank helped a French cabinet minister to hide undeclared assets in a secret
Swiss bank account. The minister, Jerome Cahuzac, stepped down in March this
year.

The authorities have announced a second formal probe that
targets Francois Reyl; it seeks to establish if the bank had laundered funds
hidden from French tax authorities. It follows the questioning of a former
employee of the bank in April by magistrates.

While the bank did not talk about specifics of the latest report to WealthBriefing, a spokesperson said: "The bank has said it is fully co-operating with the French authorities and is confident the matter will be dealt with swiftly and that there will be minimal impact on its clients."

"The chief executive, Francois Reyl, was questioned by
French investigating magistrates yesterday afternoon related to a procedure
involving a small number of clients," the bank told Reuters in a
statement. It said there were disagreements between France
and Switzerland
as to whether Swiss banks could be held responsible if their French clients hid
money from their country's taxman.

"The bank is shocked its chief executive has been put
under formal investigation and banned from leaving the country and exercising
his role as director general," bank Reyl is reported to have said.

The Geneva-based bank has repeatedly denied wrongdoing.

The news service quoted an official at the French
prosecutor's office that second formal investigation of Francois Reyl launched
by magistrates on last week focused on whether the bank laundered funds hidden
from tax authorities in a small number of accounts.

The former employee of Reyl who was questioned in April,
Pierre Condamin-Gerbier, had said he held a list of French politicians with
undeclared funds in secret Swiss accounts.

Reyl filed a criminal complaint against Condamin-Gerbier in
June alleging theft, falsification of documents and violation of professional
and commercial confidentiality. Condamin-Gerbier was arrested in July on his
return to Switzerland.