Bradley Associates, Swiss tell the US that it will not let UBS give out client data.
(I-Newswire) July 28, 2009 - Switzerland government has said that it will stop any data from UBS being handed over to the American authorities. The Swiss are firm on the stance that no client data will be handed over to the US.
UBS the wealth management giant was told by the courts to hand over client data to see who was evading tax in the US. They have a court hearing in the US this coming Monday as they refused to give the US authorities the data that they wanted.
The Swiss are keen to keep its secrecy laws intact and the Swiss judiciary have come out and said that it would be against their laws if UBS gave the US authorities the data.
Bradley Associates analysts believe that this stance is causing tension between the two governments and diplomatic ties are now being tested. The US is keen to tackle the rich who evade tax, but the Swiss banking system has built its reputation on secrecy. UBS reputation has taken a huge hit and many customers now have gone to other rival banks.
Reporting at a press conference Bradley Associates analysts said that the Swiss government was keen to uses its authority to ensure that the bank is not pressured in giving over the information.
In Swiss law it is a criminal offence to give information to foreign governments, but the US are trying to get concessions to this. Bradley Associates feels that the secrecy to the banking system is key to the Swiss, without these billions will leave their country as banking clients will look for alternatives. It will be hard for the US to demand that the Swiss hand over any details and the Swiss will not like being dictated to either. Bradley Associates a senior analyst believes that some concession will be made but the secrecy of the banking system will stay intact.