UBS New York headquarters
Update 3 New York, USA (NYT) – According to the New York Times, Switzerland’s largest bank UBS, under pressure from the US tax authorities, has begun to close “hidden offshore accounts of its well-heeled American clients, potentially allowing their secrets to spill into the open.” Reuters, with a more complete report, has had the information confirmed by UBS, which notes that this is a process that started in November 2007 and which was publicized some months ago.
In July 2008 the IRS (Internal Revenue Service) demands for access to several thousand UBS and other banks’ clients’ accounts led to Mark Branson, the chief financial officer for the bank’s wealth management unit, addressing a US Senate subcommittee. He announced that UBS would be “exiting completely” the offshore banking business for US residents through its own branches: “UBS will no longer provide offshore banking or securities services to US residents through our bank branches. Such services will only be provided to residents of this country through companies licensed in the United States.” Offshore banking is a $7.3 trillion industry, also known as cross-border banking: the assets are managed in a country in which the owners of the assets are not resident.
