Clients of Swiss banks seem to have completely forgotten about bank secrecy inviolable possession of which had been famous for Switzerland. August 19, 2009 the country's largest credit institution UBS has signed an agreement with the U.S. government, providing data on the 4450 bank depositors to U.S. authorities. The same day, the Swiss government announced the sale of its stake in UBS.
On the agreement between UBS and the U.S. administration, disclosing bank secrecy, has reported on 12 August, but its details were unknown. August 19, the Swiss Government has published the official announcement of the signing of the document in Washington and the immediate entry into force of this document. Later the same day, UBS issued a press release, which announced the settlement of disputes between the bank and U.S. authorities, as well as just explained in detail the procedure of data on the accounts of holders of at UBS.
Of course, direct information about clients of Swiss bank sent the U.S. government will not. According to the procedure, the Federal IRS (Internal Revenue Service, IRS) will ask the Swiss Tax (Swiss Federal Tax Administration, SFTA) for assistance in their investigations. In turn, SFTA make a formal request to the UBS, a bank will provide the required data (about those 4450 clients) SFTA, as well as ask their U.S. investors to voluntarily participate in the investigations of IRS.
It is worth noting that the Swiss tax authorities will not send data about customers UBS with its American counterparts by default. SFTA independently decide on what kind of information can be sent to IRS, and it will be based on legal regulations. At least, that's the report said UBS. How many actually will take time, all these requests and responses, as well as what part of the required information will receive IRS, we can only speculate.
Is not the first time
According to the Boston Consulting Group and the Association of Swiss banks, foreign customers are kept in Swiss banks more than two trillion dollars. This is about 27 percent of the world's offshore deposits. Service Control Money Laundering (MROS) of Switzerland, in April of this year reported that the amount of money laundered through Swiss financial system, increased in 2008 twice - to 1,87 billion Swiss francs (1.23 billion euros).
In February 2009, UBS, strictly speaking, violated banking secrecy, agreeing to disclose information about 250 U.S. customers, which law-enforcement agencies in the U.S. on suspicion of tax evasion using offshore accounts. At the same time UBS has agreed to pay the U.S. government compensation in the amount of 780 million dollars for help in the shelter of American citizens taxes totaling $ 20 billion.
In addition, at the same time, in February, the bank despite the decision of the Swiss court gave U.S. authorities information on eight of its clients. But then, when the Americans demanded to disclose information about 52 thousand clients suspected of tax evasion, UBS was caught between two fires. Despite the bank's willingness to cooperate (in the autumn of 2008 UBS announced that he was willing to share information on the accounts of more than 20 thousand customers), the Ministry of Finance of Switzerland said that the country's laws prohibit the bank transfer information abroad. The government even promised to seize on these data, if the bank will try to do it.
In April 2009, Switzerland has been included in the "gray list" of tax havens ", prepared by the Organization for Economic Cooperation and Development (OECD). It included countries declared their readiness to revise the banking laws in accordance with the requirements of the OECD, but not yet changed the laws. On August 19, 2009 Switzerland is still in the "gray" list. Luxembourg was excluded from the "gray" list in early July 2009, ceasing to thus be considered a "tax haven".
As a result, UBS has refused to disclose confidential information about 52 thousand depositors, and U.S. Department of Justice filed a lawsuit against the Swiss bank. Now, after signing the agreement, U.S. officials pledge action to withdraw.
It would seem that all differences settled, wolves eat, and the sheep are not much diminished. However, the Swiss authorities still seem to adhere fairly tough stance in relations with UBS. Already the evening of 19 August, immediately after it was learned that UBS has agreed to disclose data on depositors, the Swiss government announced the sale of its share (nine percent) in the bank at a public auction. According to Reuters, the authorities have stated that confidence in UBS after the settlement of a dispute with the bank by the U.S. authorities confirmed. In addition, writes The Wall Street Journal, by selling its share of the Swiss government hopes to regain invested in UBS for the salvation of the crisis six billion francs (5.6 billion dollars).
It is not known, however, legitimately be said to "strengthen" trust in UBS in the current situation. Shares of the bank after the declaration of the Government of Switzerland have dropped by about a percentage, and other financial organizations in the country fear that the requirements of U.S. tax officials to share information on depositors and touch them too. In addition, since February, when UBS first violated bank secrecy, Swiss banks began to beware of contract with customers from the United States, actively serving customers from Russia, Asia and the Middle East.
On the agreement between UBS and the U.S. administration, disclosing bank secrecy, has reported on 12 August, but its details were unknown. August 19, the Swiss Government has published the official announcement of the signing of the document in Washington and the immediate entry into force of this document. Later the same day, UBS issued a press release, which announced the settlement of disputes between the bank and U.S. authorities, as well as just explained in detail the procedure of data on the accounts of holders of at UBS.
Of course, direct information about clients of Swiss bank sent the U.S. government will not. According to the procedure, the Federal IRS (Internal Revenue Service, IRS) will ask the Swiss Tax (Swiss Federal Tax Administration, SFTA) for assistance in their investigations. In turn, SFTA make a formal request to the UBS, a bank will provide the required data (about those 4450 clients) SFTA, as well as ask their U.S. investors to voluntarily participate in the investigations of IRS.
It is worth noting that the Swiss tax authorities will not send data about customers UBS with its American counterparts by default. SFTA independently decide on what kind of information can be sent to IRS, and it will be based on legal regulations. At least, that's the report said UBS. How many actually will take time, all these requests and responses, as well as what part of the required information will receive IRS, we can only speculate.
Is not the first time
According to the Boston Consulting Group and the Association of Swiss banks, foreign customers are kept in Swiss banks more than two trillion dollars. This is about 27 percent of the world's offshore deposits. Service Control Money Laundering (MROS) of Switzerland, in April of this year reported that the amount of money laundered through Swiss financial system, increased in 2008 twice - to 1,87 billion Swiss francs (1.23 billion euros).
In February 2009, UBS, strictly speaking, violated banking secrecy, agreeing to disclose information about 250 U.S. customers, which law-enforcement agencies in the U.S. on suspicion of tax evasion using offshore accounts. At the same time UBS has agreed to pay the U.S. government compensation in the amount of 780 million dollars for help in the shelter of American citizens taxes totaling $ 20 billion.
In addition, at the same time, in February, the bank despite the decision of the Swiss court gave U.S. authorities information on eight of its clients. But then, when the Americans demanded to disclose information about 52 thousand clients suspected of tax evasion, UBS was caught between two fires. Despite the bank's willingness to cooperate (in the autumn of 2008 UBS announced that he was willing to share information on the accounts of more than 20 thousand customers), the Ministry of Finance of Switzerland said that the country's laws prohibit the bank transfer information abroad. The government even promised to seize on these data, if the bank will try to do it.
In April 2009, Switzerland has been included in the "gray list" of tax havens ", prepared by the Organization for Economic Cooperation and Development (OECD). It included countries declared their readiness to revise the banking laws in accordance with the requirements of the OECD, but not yet changed the laws. On August 19, 2009 Switzerland is still in the "gray" list. Luxembourg was excluded from the "gray" list in early July 2009, ceasing to thus be considered a "tax haven".
As a result, UBS has refused to disclose confidential information about 52 thousand depositors, and U.S. Department of Justice filed a lawsuit against the Swiss bank. Now, after signing the agreement, U.S. officials pledge action to withdraw.
It would seem that all differences settled, wolves eat, and the sheep are not much diminished. However, the Swiss authorities still seem to adhere fairly tough stance in relations with UBS. Already the evening of 19 August, immediately after it was learned that UBS has agreed to disclose data on depositors, the Swiss government announced the sale of its share (nine percent) in the bank at a public auction. According to Reuters, the authorities have stated that confidence in UBS after the settlement of a dispute with the bank by the U.S. authorities confirmed. In addition, writes The Wall Street Journal, by selling its share of the Swiss government hopes to regain invested in UBS for the salvation of the crisis six billion francs (5.6 billion dollars).
It is not known, however, legitimately be said to "strengthen" trust in UBS in the current situation. Shares of the bank after the declaration of the Government of Switzerland have dropped by about a percentage, and other financial organizations in the country fear that the requirements of U.S. tax officials to share information on depositors and touch them too. In addition, since February, when UBS first violated bank secrecy, Swiss banks began to beware of contract with customers from the United States, actively serving customers from Russia, Asia and the Middle East.
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