A preliminary agreement has been reached in the tax evasion dispute between Swiss Bank UBS and US authorities.
UBS has agreed “in principle” to hand over records of 5’000 of the biggest accounts that allegedly conceal unreported wealth.The agreement diffuses a potentially embarrassing conflict between Swiss and US authorities.
Although the US government originally sought up to 52’000 names, the expectation that these accounts will reveal the most blatant offenders allows them to save face.
The worry for offshore account holders now, is whether this tentative agreement will serve as the launch pad for further probes into other offshore banking centers.
Swiss officials maintain that this development does not compromise the country’s bank secrecy laws.