UBS closes Swiss accounts of U.S. clients!
NEW YORK - July 18, 2008 - UBS
caved in to mounting pressure from the U.S. government yesterday and announced
plans to close the Swiss bank accounts of all its American customers and
prepared to lift the veil of secrecy that has protected its clients for
centuries.
Mark Branson, the chief financial officer of UBS's global wealth-management unit, told a Senate hearing into tax evasion in Washington, “We have decided entirely to exit the business. UBS will no longer provide offshore banking or securities services to U.S. residents through our bank branches.”
Mr. Branson said, “While we are winding down this business there will be no new accounts opened and Swiss-based client advisers will not be permitted to travel to the United States for the purpose of meeting with U.S. clients.”
Closing Swiss accounts to U.S. clients does not affect UBS's general wealth-management business in America, Mr. Branson said. UBS, the world's largest wealth-management group, will still offer U.S.-based services through three subsidiaries.
The U.S. government and the Internal Revenue Service (IRS) have been turning the screw on banks suspected of helping clients to lawfully avoid taxes by using offshore accounts.
