Tax amnesties in Latin America are hurting Swiss banks, including UBS and Julius Baer. That's how they are rising to the challenge.
UBS and Julius Baer, two Zurich-based companies, are among banks planning to go onshore in Argentina. Their plans come amid a tax amnesty program in the Latin American country, according to «Bloomberg».
The program is forecast to result in about $16 billion in assets being moved back to the country, money that was previously held in offshore accounts.
Local Brokerages
UBS and Julius Baer are mulling plans to acquire local brokerages to quickly get their hands on a banking license, according to the report. So far, about 100,000 citizens of Argentina told their authorities that they owned hidden assets, with 58,000 of those holding offshore accounts.
UBS and Julius Baer didn't comment.
Similar Programs Elsewhere
The successful tax amnesty in Argentina has stirred the finance industry. BNP Paribas already has an asset management in Buenos Aires. It is thinking about expanding the unit to capitalize on the expected growth of the fund industry after the repatriation of assets.
Swiss banks so far have lost some 1.45 billion francs after the launch of a similar tax amnesty in Brazil.
