Switzerland's banking lobby is wary of a Swiss court decision which allows confidential UBS data to be sent to French investigators.
Swiss bankers are worried: Switzerland's highest court on Friday ruled that Swiss tax officials may send data on roughly 40,000 UBS clients to France's tax office. The ruling applies to UBS only, but it opens the door for French officials to pursue other Swiss wealth managers with as much vigor as it has Switzerland's largest bank.
«The Swiss Bankers Association is skeptical with regard to the decision,» the lobby group for banks in Switzerland said in a statement following the ruling. Specifically, the body said it was wary that data intended for use in a tax evasion probe won't also be used by French officials against UBS in a money laundering investigation (France has linked the two probes).
«Fishing Expeditions»?
The lobby said it believes foreign investigators may begin trawling blindly in their future requests for information. «The hurdles for pure evidence-gathering activities could be lowered, thus increasing the risk of fishing expeditions,» the SBA said. «The use of data for purposes other than tax could also be permitted, which could fatally weaken the principle of specialty.»
This refers to the practice of applying principles of law to one individual matter only, not broadly. Other banks are keeping close watch on the trial: Credit Suisse is under investigation in France as well, finews.com reported in May. UBS' appeal in the criminal conviction is poised to last until 2021 – at least.
