Swiss Banks Hid Personal Loans, Accounts | Now Must Pay Fines

UBS accused of conspiring

UBS, owner of many Swiss banks that kept strict privacy standards and hid cash, personal loans and other assets of United States citizen will now turn over those records.

The bank also must pay $750 million in fines, penalties, interest and restitution. Federal authorities are saying USB conspired to create sham accounts to hide assets of U.S. clients from the U.S. government so the account holders wouldn’t have to report those assets on their taxes.

Banking giant speaks on allegations

Peter Kurer, chairman of Swiss-based UBS AG, said “We accept full responsibility for these improper activities.” Institutions that give out personal loans generally protect people’s privacy, but it appears USB may have gone too far.

“Client confidentiality, to which UBS remains committed, was never designed to protect fraudulent acts or the identity of those clients, who, with the active assistance of bank personnel, misused the confidentiality protections,” Kurer said Wednesday.

Under an agreement with federal prosecutors, UBS will pay the fines, turn over clients’ records and cease any similar cross-border banking activities.

Prosecuters’ case

U.S. officials say the scam began in 2000 when UBS acquired a  U.S. company. Prosecutors say UBS executives helped U.S. taxpayers open accounts under sham entities. ... click here to read the rest of the article titled "Swiss Banks Hid Personal Loans, Accounts | Now Must Pay Fines"