Swiss court confirms transfer of UBS data to the US
The Swiss Federal Administrative Court has announced that an agreement with the US, allowing Swiss bank UBS to disclose account information of clients suspected by the US Government of tax evasion, is binding.
A Jurist report states that the agreement, approved last month by the Swiss Parliament, allows UBS to turn over information of 4 450 US clients to the US Internal Revenue Service (IRS) and may prevent the US Department of Justice (DOJ) from resuming a lawsuit against UBS in which it had sought the names of 52 000 UBS clients.
The court also announced that they have rejected a challenge to the law by a UBS client who had objected to the data transfer. In announcing its ruling, the court noted the importance of the US-Swiss agreement, saying ‘the economic interests of Switzerland as well as the interests in fulfilling obligations that have been entered into in international law are of major significance and outweigh the individual interests of the complainant in this case’.
The report says that the ruling could potentially affect 100 other appeals from UBS clients, which are currently pending.