In a move that can intensify war of words between Switzerland and the US over the latter’s demand that UBS AG hand over names of 52,000 US taxpayers holding offshore accounts in Switzerland, the Swiss government said that it would forbid its bank to reveal the data to US Justice Department – reported Financial Times.
In a court filing, the Swiss government said that it will use its legal authority to ensure that the bank cannot be forced to reveal the information illegally. If necessary, it may issue an order taking effective control of the data at UBS that is the subject of the summons.
Alan Gold, a Judge at the US District Court told the Justice Department to react by July 12 to the Swiss filing. Mr. Gold said the US should explain how far it intends to proceed by way of request for enforcement, up through and including receivership and/or seizure of UBS’ assets within the United States if he grants the petition and the Swiss prevent or otherwise prohibit UBS from complying.”
He is expected to hold a July 13 evidentiary hearing on the case.
