R.C. Lim, Attorney and Counselor at Law

UBS Violates Bank Secrecy

Today’s news that UBS will reveal the names of several prominent families who have covertly banked in Switzerland confirmed what many have already suspected for some time: the trust between client and banker would disappear once the bank was faced with this choice between continuing its overseas operations or maintaining the principle of client secrecy that traces to the Middle Ages. You might say that bank secrecy has become a victim of its successful US Wealth Management division.

This follows the story of the German taxing authorities successful uncovering of tax cheats this past summer. Now would-be hiders of assets should beware that there are a multitude of ways to get caught in the act of tax evasion.

1. From your own actions of money entering or leaving the tax haven.

2. From a rogue bank employee.

3. From the bank itself.

As all honest asset protection planners will advise, the purpose of our work is NOT to cheat the tax man. Rather the purpose is generally to provide to individuals many of the same protections that commonly exist and utilized by corporate “persons.” This activity has been recognized as legitimate reason to send money to overseas locales by the US taxing authorities. However, the price of this activity is that one MUST report on one’s overseas assets.