Breaking: Swiss Bank UBS Closing 19,000 Hidden Offshore Accounts Of American Clients – What About Barbados’ Offshore Banking Industry?

Caribbean Offshore Financial Centers Next?

The Swiss bank UBS is closing 19,000 previously-secret offshore bank accounts owned by American clients after being targeted by the United States government that is determined to stop all tax fraud through offshore banking centers.

Offshore banking centers like Barbados.

This is huge my friends. Huge.

And no, President Obama is NOT going to go easy on good old Barbados just because we are a majority black small island nation. As we already pointed out long ago, Barack Obama has been a leader in calling for the shutting down of offshore financial centers like Barbados.

Further  Reading

BFP: President Barack Obama Would Destroy Barbados Offshore Banking Industry – He Said So!

Reuters…

UPDATE 1-UBS closing U.S. clients’ offshore accounts

(Recasts with UBS confirmation, adds background)

By Lisa Jucca

ZURICH, Jan 9 (Reuters) – Swiss wealth manager UBS AG (UBSN.VX: Quote, Profile, Research) (UBS.N: Quote, Profile, Research) is closing all the offshore accounts of its U.S. clients, the bank said on Friday, as it comes under pressure from U.S. tax authorities.

The Swiss bank decided in July last year to stop offering offshore accounts to U.S. citizens after it was targeted by a U.S. tax investigation which challenges Switzerland’s famous banking secrecy laws.

U.S. prosecutors have alleged UBS helped clients hide $18 billion of untaxed American money in undeclared accounts. This amounts to around $300 million of annual unpaid taxes, the newspaper said.

UBS spokesman Serge Steiner said the decision to close offshore accounts for U.S. domiciled clients was taken in November 2007. The bank started last year to close cash accounts of U.S. clients holding less than 50,000 Swiss francs ($45,660), he added.

“This is an ongoing process. It started last year and accelerated since last summer,” Steiner said, confirming a New York Times report. As part of the investigation, U.S. authorities indicted UBS’s wealth management chief last year.

UBS, which U.S. authorities say helped wealthy Americans hide cash in offshore bank accounts, will shut about 19,000 offshore accounts, the paper said, quoting unnamed U.S. clients.

Continued…

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8 Comments

Filed under Barbados, Business & Banking, Crime & Law, Offshore Investments, Politics

8 responses to “Breaking: Swiss Bank UBS Closing 19,000 Hidden Offshore Accounts Of American Clients – What About Barbados’ Offshore Banking Industry?

  1. Wolf Blitzen

    Don’t get your knickers twisted.
    There are plenty of other banks.
    Try this one. Click the “EN” button.

    http://www.lgt.com/de/index.html

  2. oldrooster

    There may be plenty of other offshore banks but this is only a start. Barbados will come under increasing pressure from the USA. This is only a sample of what will happen. The monitoring tools and systems that were put in place to “fight financing of terrorists” are showing their real purpose. How do you think this UBS situation came to the attention of the US tax department?

  3. Anonymous

    Barbados has had information exchange agreements with the IRS in the US for years. There is effectively no “banking secrecy” in Barbados.

    These agreements have been used several times in the past with US FBI agents being present as “observers” in the execution of warrants by the RBPF.

    The challenge for Barbados is to ensure that the we DON’T get lumped in with the territories that have no regulatory framework.

  4. reality check

    Anonymous

    While much of the banking system in Barbados has been fully transparent for a number of years now, why is their still secrecy in Barbados as to shareholders and particularly beneficial shareholders?

    Why has the FBI investigation into accounts held by Barbadians in the US, never been released?

    Why is there no transparency by government among politicians and bureaucrats?

    Obama may be getting his countries act together
    but Barbadians are still waiting?

    The system is rotten and the electorate was promised things would be fixed. This must start at the top.

  5. marvinbareback

    Since 2000, the US had instituted the “qualified jurisdiction” and “qualified intermediary” rules that give the IRS full access to records indicating the beneficial owners of accounts. Their purpose was to ensure that all institutions that had US clients were reporting capital gains and income that otherwise would be subject to “back withholding tax” of 32%. This essentially made it unprofitable to hold an account offshore for a US citizen. Many banks (including most of the Canadian based ones here) chose not to have any US based clients due to the onerous reporting and capital segregation requirements. The issue with UBS, which obviously decided to keep its US clients, is that a number of their internal wealth advisors were enticing US taxpayers to avoid reporting offshore holdings by using a number of structures for tax “sheltering”. The arrest of a senior UBS director who was just transiting the US recently, and subsequent charges against the firm for encouraging US citizens to avoid taxes, precipitated the decision to stop having US citizens as clients at all in any of its offshore branches.

  6. WEVEXX

    Please stop this foolishness and propaganda.
    This simply goes to show that people want to keep more of their own money and not be subject to the whims and fancies of some government who wants to tax its citizens even if they work and get paid at the North Pole.
    When Mayor Bloomberg a few years back paid less than $10 in taxes and is a known Billionaire people will be upset at these revalations and will act in accordance with them.
    On another note, when will we at home demand better service from BL&P?
    They are running something just short of a fowl-farm down there without proper regulation. Power is always off in some part of the island every week at least once. UNACCAPTABLE!

  7. 94

    reality check don’t be a twit….
    my comments are with reference to offshore banking regulations with regards to US residents. The subject of the article does not apply in Barbados.

    You cannot hide money from Uncle Sam in Barbados.

    Another fine example of BFP investigative journalism.

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