UBS to pay $780 mn fine to US govt in tax case

Admitting to helping Americans taxpayers to hide accounts, the Swiss banking major UBS has agreed to pay $780 million in fines and penalties to the US government.

The Swiss bank would also be providing the details and identities of the customers. Moreover, the company has also agreed to "expeditiously exit" the business of providing banking services to US clients with undeclared accounts, the US Department of Justice said in a statement.

"...UBS has further agreed to pay $780 million in fines, penalties, interest and restitution," the department said in a statement on Wednesday.

The department said charges against the UBS were that it was conspiring to defraud the US by impeding the Internal Revenue Service (IRS).

"UBS, based on an order by the Swiss Financial Markets Supervisory Authority (FINMA), has agreed to immediately provide the US government with the identities of, and account information for, certain United States customers of UBS's cross-border business," the statement noted.

It further stated that in order to evade new reporting requirements, employees and managers with cross-border business, with the knowledge of certain UBS executives, opened new UBS accounts in the names of nominees or sham entities.