UBS to Reveal Secret Account Information to IRS, Pay $780 Million

UBS AG has reached an agreement of deferred prosecution with the United States Internal Revenue Service after allegedly conspiring to defraud the United States by helping between 17,000-19,000 Americans hide accounts.

The terms of the deal require UBS, Switzerland’s largest bank, to provide the IRS with identities and information of accounts, including 250 identities disclosed immediately, as well as a $780 million dollar payment. UBS has 18 months to comply with these terms, help prosectuors, and reform business practices or they face indictment. If UBS complies, the charges will be dropped at the end of the 18-month period.

It is estimated that UBS has helped hide $20 billion and has aided in Americans evading $300 million per year in taxes from 2002-2007.

UBS has also agreed to charges from the Securities and Exchange Commission of acting as an unregistered broker-dealer and investment advisor for Americans.

For more details:
The NY Times
WSJ Law Blog
The Guardian
Business Mirror

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2 responses to “UBS to Reveal Secret Account Information to IRS, Pay $780 Million

  1. I’m sure this is just what UBS needed with their current financial situation. Apparently a lot of account holders have been withdrawing their accounts because they saw this coming.

  2. Well, if this isn’t just what they need, I’m sure that lots of customers withdrawing their accounts is just the ticket in a time of financial crisis…

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