UBS to forewarn US tax evasion clients

by Gill Montia

Story link: UBS to forewarn US tax evasion clients

American customers of UBS awaiting a knock at the door from tax authorities will be forewarned, The Times has reported.

According to the newspaper, clients whose account details could be handed over for tax evasion investigations can now ask the bank if they will be exposed, following a ruling by a Swiss court.

In June of last year, prosecutors began examining the possibility that US nationals had been helped to evade tax by staff at the Swiss investment bank.

In November, UBS admitted to having colluded in fraud and has since settled $780 million in fines and other penalties under an agreement with the US Securities and Exchange Commission, Department of Justice and a Federal court.

Last month, it emerged that US authorities are investigating over 150 clients of the bank when a document was filed in a Florida court that is in the process of sentencing former UBS banker, Bradley Birkenfeld, for helping American clients hide their wealth.

A further 4,450 names are reported to be in the offing and US authorities have said they are primed to increase their investigations.

However, under a new ruling by a Swiss court, UBS is obliged to tell clients if their business with the bank fits the criteria for a tax-evasion list, and the bank says it will contact clients as soon as such accounts are identified.