Reuters is reporting that Bank Julius Baer is cooperating with French authorities in their criminal investigation into an alleged value-added-tax (“VAT”) fraud in the EU Emissions Trading System. In July, Bank Julius Baer announced that it was involved in a tax fraud investigation involving a former client and that it was suspected of exercising a “lack of due diligence in financial transactions.” The article cites sources as saying that the bank received the proceeds of the VAT fraud, which involved moving goods across national borders without paying VAT and re-selling the goods for amounts that included the VAT that was evaded.