A Swiss Bank Is Set to Open Its Secret Files
Swiss banking system is known for its secrecy and have been safe haven for keeping money from middle ages. But now secret hush hush world of swiss banking system is coming to an end. In a move which will herald a new beginning a swiss bank has agreed to reveal its customer's information.
UBS, the largest bank in Switzerland, agreed on Wednesday to divulge the names of well-heeled Americans whom the authorities suspect of using offshore accounts at the bank to evade taxes. The bank admitted conspiring to defraud the Internal Revenue Service and agreed to pay $780 million to settle a sweeping federal investigation into its activities.
It is unclear how many of its clients’ names UBS will divulge. Federal prosecutors have been examining about 19,000 accounts at the bank, but UBS ultimately may disclose the identities of only a few hundred customers.
But to some, turning over any names at all heralds the end of the secret Swiss bank account, whose traditions date to the Middle Ages.
Probably taking a cue from American government's stand British Prime Minister has announced that a worldwide crackdown on tax havens, from Switzerland to the Cayman Islands, will be spearheaded.
The prime minister announced yesterday that he was negotiating with fellow world leaders the terms of a tough regulatory system on tax and banking that will cover every country.
Speaking at his monthly press conference in Downing Street, Brown said: "We want the whole of the world to take action. That will mean action against regulatory and tax havens in parts of the world which have escaped the regulatory attention they need. The changes we make will have to apply to all jurisdictions around the world."