Swiss Federal Council May Intervene In UBS Cross Border Case

by Ulrika Lomas, Tax-News.com, Brussels

09 July 2009

In a response to the opinion of the US authorities in the UBS case, Switzerland on Tuesday confirmed that Swiss law prohibits handing over client information. In its filing with the competent court in Miami, the government of Switzerland also points out that the necessary measures to implement Swiss law have been prepared.

A statement on the Swiss Federal Authority website reads:

'In their opinion of June 30, 2009, the US authorities had stated in particular that UBS would not have to expect a criminal proceeding if it handed over the client information. In a brief response, Switzerland makes it perfectly clear that Swiss law prohibits UBS from complying with a possible order by the court in Miami to hand over the client information. In addition, on the basis of the Federal Council's decision of principle, UBS will by no means be in a position to comply with such an order, says the Council. According to that decision, says the Council, all the necessary measures should be taken to prevent UBS from handing over the information on the 52,000 account holders demanded in the US civil proceeding.'

'The Federal Department of Justice and Police (FDJP) is responsible for implementing the decision. If circumstances require, the FDJP will issue a corresponding order. The order prohibits UBS explicitly from handing over client information.'

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