Ten years after U.S. prosecutors hit UBS with a hefty fine, six banks are still waiting for their verdict. A flood of data and lack of personnel have delayed concluding the remaining cases.
On February 19, 2009, the U.S. imposed a then record fine on UBS, which at the time was reeling in any case. The Department of Justice (DoJ) ordered Switzerland’s biggest bank to pay $780 million for helping U.S. taxpayers hide their assets from the taxman.
Since then, the Swiss financial market has changed dramatically. Banks have stopped accepting tainted money, removed such assets from their books and the famed banking secrecy laws have stopped applying for transnational business purposes.
Waiting for a Verdict
Six banks however have still not been able to close this chapter and are waiting for a verdict:
- Pictet
- Rahn+Bodmer
- HSBC Switzerland
- Liechtensteinische Landesbank
- Bank Hapoalim
- Mizrahi-Tefahot
Trump Made No Difference
When Donald Trump became president of the U.S., expectations were that the eagerness to pursue the banks would ease somewhat as he was known to be bank-friendly. In the second half of 2018, a few cases were finally closed, among them was Julius Baer.
The U.S. authorities have not lost their interest in the case and the situation of the banks awaiting a solution hasn’t changed as a consequence of who is acting U.S. president.
«I have seen no change in the way that the Justice Department is pursuing the cases,» said Florian Joerg, partner at the Bratschi law firm in Zurich. He has advised banks in the tax dispute with the U.S. «The DoJ simply works through the lists.»
Flood of Data From Switzerland
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