UBS accounts to be passed to US

The details of the UBS agreement with the Justice Department will be released next week, according to reports, some basic details.

UBS Midtown

The US will withdraw demand for disclosure of the identity of 52,000 UBS accounts holders.

Swiss will direct UBS to turn over information on 4,450 accounts to IRS.

Swiss agree to review requests involving other banks for account holders similar to UBS case.

UBS says it does not have to pay any fine.

Swiss banking giant UBS AG agreed Wednesday to turn over to the IRS the details of 4,450 accounts suspected of holding undeclared assets by American customers, ending an intense trans-Atlantic legal fight.

IRS Commissioner Doug Shulman said the accounts held $18 billion in assets at one time. Many have since been closed, he said.

In February, UBS admitted to tax fraud in the US and agreed to pay $780m (£467m) as part of a provisional deal to settle charges that it helped thousands of US clients use Swiss bank accounts to evade taxes.

The Swiss Bankers Association release a press release in Basel today:

The Swiss Bankers Association (SBA) welcomes the fact that the USA and Switzerland have been able to find an out-of-court solution to the legal problems of UBS in the US and finds the details of the agreement convincing.

The out-of-court agreement avoids a prolonged legal battle that would have had an uncertain outcome and UBS can now continue with its consolidation process in an atmosphere free of this legal uncertainty. The solution found conforms entirely with prevailing Swiss law.

This is of crucial importance for the Swiss financial centre because international clients rely very much on the predictability and stability of the Swiss legal system. The SBA expresses its profound respect for the Swiss negotiators working under the strategic leadership of the government for their hard work and the solution found.

The SBA believes it important that the data delivery process to be set up protects the interests of clients innocent of any wrongdoing. In addition, the SBA expects the US and all other countries to adhere to the bilateral treaties that provide for administrative assistance in tax matters.

The revised treaties conform with the OECD standard governing the exchange of information where there are well-founded suspicions that tax offences have been committed.

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