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UBS sees billions in assets outflow amid tax deals

UBS sees billions in assets outflow amid tax deals
AFP
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First Published: Sun, Nov 20 2011. 04 52 PM IST

Photo: Bloomberg
Photo: Bloomberg
Updated: Sun, Nov 20 2011. 04 52 PM IST
Geneva: The boss of Swiss banking giant UBS said Sunday that clients could withdraw up to 30 billion francs in assets due to deals between Bern and EU states to regularize untaxed funds hidden in Swiss banks.
“This is an estimation that covers possible accords in the whole of Europe,” UBS chief executive Sergio Ermotti told Swiss newspaper NZZ am Sonntag in an interview.
Photo: Bloomberg
“In the worst case scenario, another 30 billion francs (€24 billion, $32.7 billion) could flow out,” he said.
However, Ermotti stressed that the sum would make up just “two percent of funds, that we are trusted with in asset management.”
Switzerland has come under intense pressure over its banking secrecy rules after the financial crisis, as industrialized economies depleted of public funds seek to claw back revenues from tax cheats.
It has since done deals with Britain and Germany to regularize assets hidden by the two countries’ taxpayers in Swiss banks.
The accords require Swiss banks to make a cash payment, which would be returned if their clients voluntarily come forward to settle their tax dues.
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First Published: Sun, Nov 20 2011. 04 52 PM IST
More Topics: UBS | Assets | Tax. EU | Switzerland | Europe |