UBS Enters Diplomatic Spat With US Over Tax Evasion Names
UBS, the bank whose ex-chairman inspired a gang of white rappers to insultingly leave cans of beer outside his house (no, really), has announced it won’t be turning over any more names to the US authorities of American tax evaders that kept accounts with the bank.
They’ve turned over at least 250 names so far, along with the $780m fine they got for allowing clients to bank with them and escape taxation. In an interesting twist, the US only got access to the 250+ names after a farcical cock-up from UBS - the bank tried to pass an emergency bit of Swiss law that would prevent the revelation of the names, as the US was threatening to prosecute the American branch of bank in American courts. Unfortunately, in trying to pass this legislation, they gave the names away, and the US snapped them up. Schoolboy error.
But those names pale next to the 52,000 accounts that the US justice department claims are evading taxes, and want the details of. Cue legal lightsabre battle as the US files a civil suit to ensure the names are handed over, while Mark Branson, finance chief of UBS, says Swiss law prevents the bank from doing so. It’s turning into a bit of a diplomatic spat, with Carl Levin, chair of Senate sub-committee on investigations, charging the Swiss government with “trying to thwart” the righteous path of justice, and calling their secrecy “part and parcel of a conspiracy to commit a crime under our law”.
The justice department wants to go after the UBS execs themselves, with John DiCicco, the assistant attorney general for the tax division saying: “Certainly the executives in UBS knew what was going on”. The board, who finally got a full time replacement for Marcel Ospel in the form of Peter Kurer this week, is certainly not following the Guy Hands school of contrition – they’ve cut bonuses only to increase salaries.
It all comes as pressure on tax evasion becomes ever more vocal – Darling referred to Switzerland’s current secrecy as “intolerable”, saying in the Observer: “If it wants to be part of the international community, it’s got to be open.” And Gordon Brown mentioned it in his ovation-heavy speech to Congress yesterday: “But how much safer would it everybody’s savings be if the whole world finally came together to outlaw shadow banking systems and offshore tax havens?”
Swiss banking secrecy is something that is held dear by the country, with a referendum in 1984 showing 73% of the population were in favour of it. An arms-length attitude to government authority, pressure from the French to reveal secret accounts, and threats of banking espionage, especially targeted against Jews by the Nazis, all conspired to bring the 1934 Banking Act into law. It protects the identity of anyone banking in the country, making it a federal offence to reveal the names – hence the resistance to the American requests.
More specifically, it is not a crime to fail to report income or assets on a tax return in Switzerland – the privacy of the individual is seen as more important. Jeez, national identity must be next to none over there; we’re reminded of the Orson Welles quote that says all the Swiss ever gave us was the cuckoo clock. Well, who needs culture and patriotism when you’ve got no-one poking into your accounts and fresh powder snow every morning!
Let’s hope one of the names turns out to be charisma vacuum Lewis Hamilton, tax exile living in Switzerland, ostensibly to escape instrusions of his privacy, but the £4m in tax savings can’t have repelled him either. Excuse me if I go a bit James Whale for a moment, but can you really be described as “British Formula One champion” if you don’t actually contribute anything but lethally dull soundbites to our country? Tax exiles need a new collective nationality made for them – “Sociopaths”, perhaps?
Posted by Ben Beaumont-Thomas in Hot Money | March 5, 2009 2:32PM |
March 5th, 2009 at 4:28 pm
UBS “Shot Heard Round the World” in the beginning of the First World War of Corporations vs. Nations.
Memo sent to NYT:
I’ve tried many times to post some pointedly satirical comments on this story, which the NYT may have assumed were more humorous than deadly serious.
Please don’t mis-interpret my apparent levity.
If the NYT is not going to focus on this story you are missing the new ’shot heard round the world’ — since this IS the beginning of the first world war of democratic countries (here the US) against the non-democratic corporations, who now apparently and arrogantly believe that they have achieved sufficient ‘power’ to openly test, engage, and attack public countries through outright war as if the title of David Korten’s 1995 prescient book “When Corporations Rule the World” were now a truism.
This unusual war will be akin to a GWOC (Global War on Corporations — including bank holding corporations) and by proxy a war between democratic self-governance of ‘rule-of laws’ and equality of people vs. elitism which believes in money-power over voting-power and of Empire over democracy.
It will also be the beginning of the GWOE (Global War on Empire) to fight and determine whether elected governments of people (including ours) will prevail against the forces of corporations of money-power acting as a global Empire.
Not a story that the NYT should miss, because of either ignorance or lack of curiosity for a paper that bills itself as printing “all the news that fit to print”.
If the Times continues to drag its feet on this story, then “BADIDEA” will have a story that makes WaterGate look like a pimple on the arse of an ant at a Sunday school picnic.
Good luck guys!!!
March 5th, 2009 at 7:17 pm
Er, thanks. Brevity and crazy people – never the twain shall meet.
May 15th, 2009 at 4:30 pm
Pictet & Cie.- claim they are the “Rolls Royce”of swiss banks.
Swiss Banks or more correctly Swizz banks.
Swizz. —- “ a great disappointment.” or a “ fraud.”
Fraud. —“ an intentional deception or dishonesty.”— “a crime.”
Crime. —“ an act committed or omitted in violation of a law.”
Serious Crimes .
Conspiring to pervert the Course of Justice.
Perverting the Course of Justice.
Contempt of Court.
The Establishment “ Cover up crimes”.
The ‘Doyens’ of the establishment.’ ( Ivan Pictet and Monty Raphael.)
Ivan Pictet.
Managing partner in Pictet & Cie Bank .— Switzerland.
President of the Geneva Financial Centre.
World Bank.committee member.
United Nations. Investment Committee member,
Vice President – Global Humanitarian Forum.
Member of the Henokiens.
Blackstone Group — Board Member.
Past- President – Geneva Private Bankers association.
Past –President – Geneva Chamber of Commerce and Industry.
Monty Raphael.
Quote.” —- Doyen of U.K. Fraud lawyers.
Consultant & Head of Fraud and Regulatory Dept.
Member of Board of Directors of the Fraud Advisory panel.
Member of the Law Society of England & Wales.
International Bar Association Member.
Past President—London Criminal Court Solicitors Association.
Past Chairman —of Anti Corruption Committee.
Founder of Business Crime Committee of the International Bar
Association.
Pictet & Cie Bank & Peters & Peters.
The bank and it’s officials deliberately withheld crucial documents requested under a High Court order.The bank and it’s officials deliberately withheld evidence from the Police , and one of it’s account managers Susan Broadhead gave a false witness statement to the police.
Another one of it’s managers Nicholas Campiche ( Now Head of Pictet – Alternative Investments.)concocted a letter pretending to be a client and closed his account. The senior partner (Ivan Pictet.)sought to have numerous documents destroyed,along with those copies held in their London office of P.A.M. Initially stating that they were forgeries then their lawyers Peters & Peters – Monty Raphael – and the barrister Charles Flint.Q.C.) –later had to admit in Court that the documents were genuine.
(1) It is a criminal offence for a bank to knowingly act for an undischarged criminal bankrupt in so far as it seeks to assist that criminal bankrupt in the fraudulent movement of monies. ( Money Laundering.)
(2) It is a criminal offence for a bank to lie to the police and the bankrupts trustee in bankruptcy in so far as any knowledge of, or dealings with the bank was refuted .
(3) A bank can be guilty of Contempt of Court if it fails to comply fully with the Courts order for discovery .
(4) The banks contempt is further compounded if it fails to address its error after it is specifically drawn to the to its solicitors attention. ( Monty Raphael).
(5) It is a criminal offence under the Financial Services Act to seek to destroy evidence that might be relevant to an investigation .
(6) It is a criminal offence not to relinquish control of funds to the Trustee immediately the fact of the bankruptcy is drawn to the banks attention.
(7) It is a criminal offence to lie or otherwise obfuscate the lawful and proper enquiries of the F.S.A.
On Dec 9th,2008. the complaint was sent to 150 Members of the House Of Lords and 230 Members of Parliament.
*** We thank —David Cameron. M.P. ( Canary Wharf Speech.) Dec. 15th.2008.
(1) Bankers who behave irresponsibly should face professional consequences.
(2) If anyone is found to have behaved criminally they must be prosecuted.
(3) The F.S.A. and the Serious Fraud Office should be following up every lead, investigating every suspect transaction .
(4) We need to make it 100% clear –those who break the law should face prosecution.
(5) That we make sure we root out any wrongdoing that may have happened, whoever is involved ,however high or well connected they may be.
Quote. ( America’s Top Lawyer .)
You can be the richest man in the world with the best lawyers that money can buy but you cannot win against a man who has got nothing left to lose and is telling the truth.
Full Story.
Go to search box on “Google” and insert ( Ivan Pictet / Monty Raphael) or
insert ( Pictet & Cie / Monty Raphael.) – - then try it on “Yahoo”.
Or try (Jack Loach/ Ivan Pictet.)
February 18th, 2010 at 3:28 pm
Swiss Banks.
& other offshore banking countries.
Secrecy.—–. Secret numbered accounts.
The benefits to the bank are far greater than the benefits to the client .
The funds are easy to deposit but very difficult to withdraw.
You can/might be paid the interest accrued but don’t ask for the capital.
This type of banking facilitates crime. ( a place to hide criminally obtained monies.)
Category.
A. Drug Trafficking , Arms Dealing. International Fraud.
B. Organized Crime. Serious Fraud .
C. Tax Evasion . ( Income Tax – V.A.T—Corporation tax. Etc.
60% of the funds held in these banks fall into Categories A & B.
20% of the funds held in these banks fall into Category C.
_______________________
If you have monies in one of these banks. ( either legal or illegal monies.)
Remember. ( do not die.)
Even if you have told your wife about your “secret account.” or your children , or solicitor ,or left documents with your Will , it is impossible for them to claim the monies from that account. ( clever these banks.)
Do you recall. ( Don Johnson— in TV Show . Miami Vice.)
In 2003 he and three associates were sent by American Business Organisations to withdraw £,6.000,000,000. ( six billions.) from the accounts they had in Swiss Banks. (in bonds- securities etc.)
I wonder how the police on the Swiss border knew to stop their particular car that day after they had been to the Swiss banks . They were searched and arrested. Don and his friends made a mistake . They should not have asked for their monies back from the Swiss Banks.( clever these banks.)