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Updated: 21st February 2009, 0455 hrs
UBS warns it could go out of business if US authorities insist on disclosure of clients' details
Swiss bank UBS has warned that it could go out of business if it is forced to comply with an order to reveal the names of suspected US tax dodgers.
In documents filed in court in Miami, lawyers for UBS said a US government lawsuit lodged on Thursday could force it to violate Swiss criminal law by turning over information protected by financial privacy laws in Switzerland.
Such a violation would expose UBS employees to "substantial prison terms" as well as fines, penalties and other sanctions.
The lawsuit came just a day after UBS agreed to pay 780 million US dollars in fines to resolve US criminal fraud charges.
UBS had also agreed to identify some clients in the settlement.
But court papers show US authorities fear they may get details on as few as 12 accounts from the Swiss government.
That’s a far cry from the 52 thousand undeclared accounts that authorities allege were held by UBS for US customers.
UBS warns it could go out of business if US authorities insist on disclosure of clients' details
Swiss bank UBS has warned that it could go out of business if it is forced to comply with an order to reveal the names of suspected US tax dodgers.
In documents filed in court in Miami, lawyers for UBS said a US government lawsuit lodged on Thursday could force it to violate Swiss criminal law by turning over information protected by financial privacy laws in Switzerland.
Such a violation would expose UBS employees to "substantial prison terms" as well as fines, penalties and other sanctions.
The lawsuit came just a day after UBS agreed to pay 780 million US dollars in fines to resolve US criminal fraud charges.
UBS had also agreed to identify some clients in the settlement.
But court papers show US authorities fear they may get details on as few as 12 accounts from the Swiss government.
That’s a far cry from the 52 thousand undeclared accounts that authorities allege were held by UBS for US customers.
