Legal

Swiss Court Ends Appeals Process On UBS Account Transfer Case

Tom Burroughes Group Editor London 1 November 2011

Swiss Court Ends Appeals Process On UBS Account Transfer Case

The Swiss administrative court has concluded its considerations of appeals by UBS clients angry at having their once-secret banking data transferred to US tax authorities.

The Federal Administrative Court in Bern said that it had dealt with 379 of the 380 appeals. It upheld or partially upheld 100 of them. Of the others, 94 had been dismissed and the rest were either withdrawn by the appellant or rejected by the court for procedural reasons.

Apart from the one outstanding case, the court has now dealt with the entire legal dispute surrounding the release of information to US tax authorities, according to a statement by the court.

The dispute stems from how, in August 2009, Swiss authorities agreed to let UBS transfer thousands of client account details to the US as part of a civil settlement of a tax evasion case. UBS had, in a separate, criminal case, agreed to pay a $780 million fine to settle charges it aided wealthy US citizens to evade taxes. The developments were seen at the time as part of a breach of Switzerland’s venerable bank secrecy laws. It is a criminal offence for bankers in Switzerland to disclose client details.

However, the Swiss-US agreement regarding UBS has been difficult, as the matter was challenged and ruled invalid by the Federal Administrative Court. A revised agreement was renegotiated and approved by the Swiss parliament in June 2010.

The Federal Administrative Court said it finished 379 of the 380 proceedings by yesterday.

The Swiss Federal Administrative Court, with locations in Berne and Zollikofen and, from 2012, in St Gallen, consists of five divisions and a general secretariat. With 75 judges and 320 staff members, it is the largest court in Switzerland.

 

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