Finma urges approval of UBS data deal with US

The Finma chiefs are keeping a close eye on the financial institutions EQ Images

The Financial Market Supervisory Authority (Finma) has warned of further legal measures against Swiss banks in the United States over cases of suspected tax evasion.

This content was published on March 23, 2010 - 13:41

“Should no agreement be reached, there is a risk of further proceedings being instigated against not only UBS but other financial institutions as well,” said Urs Zulauf, Finma’s deputy chief executive.

Last August the Swiss government and the US authorities signed an accord aimed at handing over files on up to 4,450 clients of bank UBS suspected of tax evasion.

However, two months ago Finma ruled the agreement was invalid as it required approval by parliament. Some of the main political parties threatened to block such a deal.

“The risk of new proceedings will persist until a solution can be agreed that regulates the circumstances of all existing offshore relationships between US clients and Swiss financial institutions,” Zulauf added.

Finma also called on the government and parliament to ensure the stability of the national and international financial system and to help the Swiss economy counter any threat from bank failures.

Tougher requirements for raising capital and liquidity are to become mandatory, according to Finma.

Finma – a merger of the regulatory authorities of the banking and insurance industries – was set up at the beginning of 2009.

Urs Geiser, swissinfo.ch

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