Swiss banks sign up to reveal hidden accounts as US deadline looms
POSTED: 22 Dec 2013 14:38
Swiss banks are scrambling ahead of a December 31 deadline to decide whether to join a US programme aimed at zooming in on lenders that helped Americans dodge taxes.
GENEVA: Swiss banks are scrambling ahead of a December 31 deadline to decide whether to join a US programme aimed at zooming in on lenders that helped Americans dodge taxes.
Around 40 of Switzerland's some 300 banks have already said publicly they will take part in a US programme set up to allow Swiss financial institutions to avoid US prosecution in exchange for coming clean and possibly paying steep fines.
"What are the others going to do? That is the very big question," Swiss business lawyer Douglas Hornung told AFP.
Washington alleges that Swiss banks have helped US citizens hide billions of dollars in assets from tax authorities, in a row that has soured relations between the two in recent years.
The two countries reached a deal in August aimed at ending the dispute, piercing a significant hole in the tradition of secrecy upon which the Swiss banking industry was built.
The banks have until the end of the year to decide whether to fess up to potential wrong-doing and hand over their files to US authorities, and thereby shield themselves from legal action, or take their chances outside the programme.
Picking the wrong option could saddle a bank with crippling fines, fees or a US indictment.
Banks that opened undeclared accounts for US clients -- especially the ones that actively wooed such clients -- definitely should join the programme, experts say.
Washington in 2009 fined Switzerland's biggest bank, UBS, $780 million for complicity in tax evasion.
"If one of the 10 to 15 banks the US Department of Justice already has in its files does not show up..., you can be sure there will be a BOOM in January," Hornung said.
Earlier this year, Switzerland's one-time oldest bank Wegelin & Co. discovered the price of not coming clean to US authorities when given the chance. Founded in 1741, the bank was pushed out of business after being slapped with a $74-million fine for helping wealthy clients avoid at least $20 million in taxes.
Fourteen banks, including Switzerland's second-biggest bank, Credit Suisse, are already officially under US investigation and will have no chance to skirt legal action.
The other banks can however opt in to the programme by determining which of the three remaining categories they belong in.
Most so far are signing up for category two and thereby acknowledging they may well have had US clients with undeclared accounts.
"More banks have said they will go for category two than would be expected," said Walter Boss, a tax lawyer with Poledna Boss Kurer AG in Zurich.
"Category three, reserved for banks that aim to prove their innocence, "won't be crowded, it looks like," he said.
Especially surprising perhaps is that a large majority of the publicly backed cantonal banks have opted for category two. These banks which are regionally based and have long insisted they never went after US clients.
Small banks could be forced out of business
All the banks rushing to the confession booth have not necessarily committed any misdeeds though, experts say.
A number of banks insist they have only had a few US clients and have never done anything to encourage tax evasion, but have chosen to initially join category two for fear that a single tax-dodging American, even unbeknownst to them, could land them in legal qualms.
"I think the fears in Switzerland are too big when it comes to the United States," said Peter Viktor Kunz, a business law professor at Bern University.
"I really hope that common sense prevails in the end," he said.
Switzerland's third-largest bank, Reiffeisen, and private bank Vontobel have for instance said they will opt for category three or four, reserved for local banks with no US clients at all, which should show some of the smaller banks with few US clients that the self-flagellating is unnecessary, Kunz said.
Banks in category two will face penalties equivalent to between 20 and 50 per cent of the value of undeclared accounts, depending on when they were opened, not to mention towering legal and translation fees.
"Many of the smaller banks simply will not be able to afford this," Hornung said, cautioning that a number of banks might go belly-up.
He urged banks that had done nothing wrong to opt out of the programme altogether, insisting that Washington was not interested in hunting down the minnows in the pond.
Regardless of how many banks decide to sign up by the December 31 deadline, observers warned that the programme was unlikely to provide much immediate relief to a Swiss banking sector desperate to shake off the uncertainty that has been dogging it throughout the dispute with Washington.
Confusion over how the US programme will be implemented means "the uncertainty is still there for many," Kunz said, adding: "So no happy new year for them."
- AFP/fa
- wong chee tat :)
Showing posts with label UBS. Show all posts
Showing posts with label UBS. Show all posts
Monday, December 23, 2013
Friday, December 6, 2013
Singapore banks assure clients that data is safe
Singapore banks assure clients that data is safe
By Wong Siew Ying
POSTED: 06 Dec 2013 21:03
Several banks in Singapore have come out to assure clients that they have the measures and processes in place to protect customer information.
SINGAPORE: Several banks in Singapore have come out to assure clients that they have the measures and processes in place to protect customer information.
This comes after the theft of bank data of 647 clients of Standard Chartered (StanChart) Private Bank was reported on Thursday.
The theft occurred through StanChart's third party service provider, Fuji Xerox Singapore, which prints statements for the bank.
Responding to Channel NewsAsia, several banks say they have stringent measures in place to ensure data security.
In particular, three banks print their statements in-house.
Bank of Singapore said it does not outsource printing of any materials containing customer information, while UBS said all data remains within its own infrastructure and is not transferred to a third party vendor.
UBS added that it has clear policies and processes to safeguard data from its creation to storage and finally, to destruction of information.
And Credit Suisse, which also prints client statements in-house, has heightened monitoring activities.
Meanwhile, a few banks told Channel NewsAsia that while they do engage third party service providers, they retain oversight on information security.
DBS Bank said all its outsourcing arrangements are managed under stringent risk controls that are compliant with regulations and local laws.
The bank works closely with its vendors to review their security processes, and there is no indication that any customer data has been compromised.
Citibank Singapore said it has strict outsourcing policies, including close monitoring of procedures practised by their vendors, as well as regular physical onsite checks.
OCBC Bank, too, conducts regular security checks and audits to make sure its customers' data is secure.
And the outsourcing of its operations is done very selectively, with the bulk of them done internally.
Meanwhile, HSBC Singapore said it continually invests in systems and processes to strongly deter any criminal intentions against the bank.
Responding to Channel NewsAsia, the Association of Banks Singapore (ABS) said the association and its members are mindful of cyber threats and crime and are constantly vigilant in their efforts to combat them.
ABS added: "This recent incident of the theft of bank statements of private bank customers of Standard Chartered Bank is a stark reminder that it is imperative for all banks and financial institutions to be diligent in ensuring that their IT infrastructure and systems are robust and hardened, and to protect the confidentiality of clients data at all times.”
- CNA/gn
- wong chee tat :)
By Wong Siew Ying
POSTED: 06 Dec 2013 21:03
Several banks in Singapore have come out to assure clients that they have the measures and processes in place to protect customer information.
SINGAPORE: Several banks in Singapore have come out to assure clients that they have the measures and processes in place to protect customer information.
This comes after the theft of bank data of 647 clients of Standard Chartered (StanChart) Private Bank was reported on Thursday.
The theft occurred through StanChart's third party service provider, Fuji Xerox Singapore, which prints statements for the bank.
Responding to Channel NewsAsia, several banks say they have stringent measures in place to ensure data security.
In particular, three banks print their statements in-house.
Bank of Singapore said it does not outsource printing of any materials containing customer information, while UBS said all data remains within its own infrastructure and is not transferred to a third party vendor.
UBS added that it has clear policies and processes to safeguard data from its creation to storage and finally, to destruction of information.
And Credit Suisse, which also prints client statements in-house, has heightened monitoring activities.
Meanwhile, a few banks told Channel NewsAsia that while they do engage third party service providers, they retain oversight on information security.
DBS Bank said all its outsourcing arrangements are managed under stringent risk controls that are compliant with regulations and local laws.
The bank works closely with its vendors to review their security processes, and there is no indication that any customer data has been compromised.
Citibank Singapore said it has strict outsourcing policies, including close monitoring of procedures practised by their vendors, as well as regular physical onsite checks.
OCBC Bank, too, conducts regular security checks and audits to make sure its customers' data is secure.
And the outsourcing of its operations is done very selectively, with the bulk of them done internally.
Meanwhile, HSBC Singapore said it continually invests in systems and processes to strongly deter any criminal intentions against the bank.
Responding to Channel NewsAsia, the Association of Banks Singapore (ABS) said the association and its members are mindful of cyber threats and crime and are constantly vigilant in their efforts to combat them.
ABS added: "This recent incident of the theft of bank statements of private bank customers of Standard Chartered Bank is a stark reminder that it is imperative for all banks and financial institutions to be diligent in ensuring that their IT infrastructure and systems are robust and hardened, and to protect the confidentiality of clients data at all times.”
- CNA/gn
- wong chee tat :)
Monday, July 1, 2013
EU investigators accuse 13 banks in derivatives probe
EU investigators accuse 13 banks in derivatives probe
POSTED: 01 Jul 2013 10:00 PM
EU investigators accused 13 top banks including Barclays, Deutsche Bank and Goldman Sachs on Monday of colluding over derivatives trading, in a new move to tighten banking standards.
BRUSSELS: EU investigators accused 13 top banks including Barclays, Deutsche Bank and Goldman Sachs on Monday of colluding over derivatives trading, in a new move to tighten banking standards.
A preliminary investigation by the Commission showed that banks worked together to exclude exchanges from the derivatives market.
This was allegedly because they feared involvement by the exchanges would cut into their huge profits from over-the-counter trading.
Some aspects of derivatives trading have been blamed for exacerbating the financial crisis.
The EU's Competition Commissioner Joaquin Almunia said that the banks now had the chance to respond to the detailed accusations.
He said that they could face fines if the charges were confirmed once the investigation had been completed.
"If it is confirmed that banks collectively blocked exchanges from the derivatives market, the Commission could decide to impose sanctions," Almunia said at a press briefing.
"Exchange trading of credit derivatives improves market transparency and stability," he said.
Collusion between banks to prevent this type of trading would be "a serious breach of our competition rules", he said.
Almunia declined to give an estimate of the size of possible fines on the banks but he said the CDS market at the moment was worth about 10 trillion euros ($13 trillion).
The collapse of US investment bank Lehman Brothers in 2008 "showed how derivatives trading is able to destabilise the entire financial system," Almunia said.
The EU investigation began in 2011 and has focused on claims that the Deutsche Boerse stock market and the Chicago Mercantile Exchange were excluded from the derivatives market between 2006 and 2009 when the crisis reached its peak.
It said the two exchanges decided to turn to the International Swaps and Derivatives Association (ISDA) and data service provider Markit to obtain the necessary licences but were turned down because the banks had prevented them from doing so.
The 13 European and US banks targeted are: Bank of America Merrill Lynch, Barclays, Bear Stearns, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, Royal Bank of Scotland and UBS.
Four other banks that had been involved in the investigation -- Commerzbank, Societe Generale, Credit Agricole and Wells Fargo -- have been excluded because of a lack of evidence.
In May, a US pension fund for Cleveland metal workers initiated legal proceedings against some of the banks identified by the European Commission saying it had suffered financial losses because of "an illegal cartel".
The fund said the number of victims of the alleged cartel could reach "tens of thousands", and claimed the derivatives market had been heavily distorted by those who controlled it.
The European Commission has worked to take on a stronger role in policing the financial markets in the wake of the global financial crisis and the eurozone sovereign debt crisis.
Last month, it said it was preparing a set of proposals to tighten up oversight of key market benchmarks, especially of interest rates, after recent rigging scandals in London.
These could include moving LIBOR, a global interest rate indicator, from London to Paris where it would be supervised by the European Securities and Markets Authority.
Such a move would very likely anger the British government which jealously guards the City of London, home to one of the world's largest financial markets.
LIBOR, or London Interbank Offered Rate, is a flagship reference instrument used all over the world, affecting what banks, businesses and individuals pay to borrow money.
London's role has been undermined by revelations that major banks, among them Barclays, Royal Bank of Scotland and UBS, have manipulated LIBOR to their advantage, especially during the turmoil and aftermath of the 2008 crisis.
British regulators have laid out plans for a new system combining survey-based rates and objective data to replace the current system, hoping to head off EU efforts to take overall control of such a key financial market instrument.
- AFP/al
- wong chee tat :)
POSTED: 01 Jul 2013 10:00 PM
EU investigators accused 13 top banks including Barclays, Deutsche Bank and Goldman Sachs on Monday of colluding over derivatives trading, in a new move to tighten banking standards.
BRUSSELS: EU investigators accused 13 top banks including Barclays, Deutsche Bank and Goldman Sachs on Monday of colluding over derivatives trading, in a new move to tighten banking standards.
A preliminary investigation by the Commission showed that banks worked together to exclude exchanges from the derivatives market.
This was allegedly because they feared involvement by the exchanges would cut into their huge profits from over-the-counter trading.
Some aspects of derivatives trading have been blamed for exacerbating the financial crisis.
The EU's Competition Commissioner Joaquin Almunia said that the banks now had the chance to respond to the detailed accusations.
He said that they could face fines if the charges were confirmed once the investigation had been completed.
"If it is confirmed that banks collectively blocked exchanges from the derivatives market, the Commission could decide to impose sanctions," Almunia said at a press briefing.
"Exchange trading of credit derivatives improves market transparency and stability," he said.
Collusion between banks to prevent this type of trading would be "a serious breach of our competition rules", he said.
Almunia declined to give an estimate of the size of possible fines on the banks but he said the CDS market at the moment was worth about 10 trillion euros ($13 trillion).
The collapse of US investment bank Lehman Brothers in 2008 "showed how derivatives trading is able to destabilise the entire financial system," Almunia said.
The EU investigation began in 2011 and has focused on claims that the Deutsche Boerse stock market and the Chicago Mercantile Exchange were excluded from the derivatives market between 2006 and 2009 when the crisis reached its peak.
It said the two exchanges decided to turn to the International Swaps and Derivatives Association (ISDA) and data service provider Markit to obtain the necessary licences but were turned down because the banks had prevented them from doing so.
The 13 European and US banks targeted are: Bank of America Merrill Lynch, Barclays, Bear Stearns, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, Royal Bank of Scotland and UBS.
Four other banks that had been involved in the investigation -- Commerzbank, Societe Generale, Credit Agricole and Wells Fargo -- have been excluded because of a lack of evidence.
In May, a US pension fund for Cleveland metal workers initiated legal proceedings against some of the banks identified by the European Commission saying it had suffered financial losses because of "an illegal cartel".
The fund said the number of victims of the alleged cartel could reach "tens of thousands", and claimed the derivatives market had been heavily distorted by those who controlled it.
The European Commission has worked to take on a stronger role in policing the financial markets in the wake of the global financial crisis and the eurozone sovereign debt crisis.
Last month, it said it was preparing a set of proposals to tighten up oversight of key market benchmarks, especially of interest rates, after recent rigging scandals in London.
These could include moving LIBOR, a global interest rate indicator, from London to Paris where it would be supervised by the European Securities and Markets Authority.
Such a move would very likely anger the British government which jealously guards the City of London, home to one of the world's largest financial markets.
LIBOR, or London Interbank Offered Rate, is a flagship reference instrument used all over the world, affecting what banks, businesses and individuals pay to borrow money.
London's role has been undermined by revelations that major banks, among them Barclays, Royal Bank of Scotland and UBS, have manipulated LIBOR to their advantage, especially during the turmoil and aftermath of the 2008 crisis.
British regulators have laid out plans for a new system combining survey-based rates and objective data to replace the current system, hoping to head off EU efforts to take overall control of such a key financial market instrument.
- AFP/al
- wong chee tat :)
Wednesday, October 24, 2012
Ample room for private banking to grow in Asia
Ample room for private banking to grow in Asia
By Lynda Hong | Posted: 24 October 2012 2215 hrs
SINGAPORE: Citigroup has overtaken Swiss bank UBS to become the top private bank in Asia-Pacific last year.
And despite assets under management (AUM) in the region dipping slightly by 0.5 per cent to US$1.1 trillion in 2011, private bankers said there is still room to grow in Asia.
Less than 20 per cent of wealth owned by Asian of high net worth individuals are professionally managed by private bankers.
This means there is ample room for the industry to grow in Asia.
But experts said the lack of talent may stifle growth for some private banks.
Rajesh Malkani, who is the head of private bank (East Region) at Standard Chartered Private Bank, said: "We are finding more and more that we have to re-train people, whether we bring them from the external world or from the internal world, to really make them capable of dealing with all the changes that is happening in the industry. So it is not an easy industry, there is a lot of new regulation, there a lot of cost growth in our businesses."
The Private Banker International Asia-Pacific AuM Benchmark 2012, which ranks private banks according to the assets of high net worth individuals' funds they manage, placed Citigroup as the top private bank in Asia Pacific.
The US banking group has some US$193 billion under management in 2011.
It overtook UBS, which is now in second place. HSBC came in third in the survey.
JP Morgan Private Wealth Management Asia's chief executive officer, Peter Flavel, said: "Wealth in Asia is growing at low teens and we are expected to grow around that rate or even better over the next three to five years. And I see Asia as the most exciting place for wealth management globally."
The survey added that the drop in Asia Pacific's AUM last year was due to falling asset values caused by the global economic slowdown.
Most of the private wealth management in Asia Pacific were managed by banks that are not headquartered in Asia.
But the study added that universal banks with strong retail offerings have a stronger advantage to target high net worth individuals with assets valued between US$1 million and US$5 million. This is a core segment for Asian private banks.
Currently, foreign banks are taking a bigger slice of the private banking pie, but the four Asian banks in the survey are catching up fast with their combined AUM rising by seven per cent.
Eleven out of 16 of these foreign banks saw their AUM staying static or dipped in 2011.
Tan Su Shan, who is managing director and group head of wealth management at DBS Bank, said: "As interest rates in some local jurisdictions get higher - because of Basel Three or because banks are just shrinking their balance sheets - some of our clients do need liquidity to pump it back into the business to buy ships, to buy palm oil. So the competition for funding is really the business growth."
DBS is the highest ranked Asian headquartered private bank, managing US$39 billion last year.
This is followed by Standard Chartered Private Bank, Bank of Singapore and Hang Seng Bank.
- CNA/fa
- wong chee tat :)
By Lynda Hong | Posted: 24 October 2012 2215 hrs
SINGAPORE: Citigroup has overtaken Swiss bank UBS to become the top private bank in Asia-Pacific last year.
And despite assets under management (AUM) in the region dipping slightly by 0.5 per cent to US$1.1 trillion in 2011, private bankers said there is still room to grow in Asia.
Less than 20 per cent of wealth owned by Asian of high net worth individuals are professionally managed by private bankers.
This means there is ample room for the industry to grow in Asia.
But experts said the lack of talent may stifle growth for some private banks.
Rajesh Malkani, who is the head of private bank (East Region) at Standard Chartered Private Bank, said: "We are finding more and more that we have to re-train people, whether we bring them from the external world or from the internal world, to really make them capable of dealing with all the changes that is happening in the industry. So it is not an easy industry, there is a lot of new regulation, there a lot of cost growth in our businesses."
The Private Banker International Asia-Pacific AuM Benchmark 2012, which ranks private banks according to the assets of high net worth individuals' funds they manage, placed Citigroup as the top private bank in Asia Pacific.
The US banking group has some US$193 billion under management in 2011.
It overtook UBS, which is now in second place. HSBC came in third in the survey.
JP Morgan Private Wealth Management Asia's chief executive officer, Peter Flavel, said: "Wealth in Asia is growing at low teens and we are expected to grow around that rate or even better over the next three to five years. And I see Asia as the most exciting place for wealth management globally."
The survey added that the drop in Asia Pacific's AUM last year was due to falling asset values caused by the global economic slowdown.
Most of the private wealth management in Asia Pacific were managed by banks that are not headquartered in Asia.
But the study added that universal banks with strong retail offerings have a stronger advantage to target high net worth individuals with assets valued between US$1 million and US$5 million. This is a core segment for Asian private banks.
Currently, foreign banks are taking a bigger slice of the private banking pie, but the four Asian banks in the survey are catching up fast with their combined AUM rising by seven per cent.
Eleven out of 16 of these foreign banks saw their AUM staying static or dipped in 2011.
Tan Su Shan, who is managing director and group head of wealth management at DBS Bank, said: "As interest rates in some local jurisdictions get higher - because of Basel Three or because banks are just shrinking their balance sheets - some of our clients do need liquidity to pump it back into the business to buy ships, to buy palm oil. So the competition for funding is really the business growth."
DBS is the highest ranked Asian headquartered private bank, managing US$39 billion last year.
This is followed by Standard Chartered Private Bank, Bank of Singapore and Hang Seng Bank.
- CNA/fa
- wong chee tat :)
Monday, March 23, 2009
UBS lays off S'pore team
UBS lays off S'pore team
UBS, the world's biggest wealth manager, has axed a team of six private bankers in Singapore, who were managing wealth for Turkish clients, sources familiar with the situation told Reuters on Monday.
UBS is struggling after losing billions in the risky US housing market, which forced it to obtain financial aid from the Swiss government.
The Singapore team was managing clients' assets worth between US$200 million (S$) to US$300 million and was hired from Swiss rival Credit Suisse two years ago, a source briefed on the situation said.
Singapore acts as an offshore booking centre for UBS' clients from Asia and Europe.
A second source said the firm has no plans to exit wealth management for Turkish clients despite the removal of the team in Singapore, which was done as part of a group restructuring.
'Like any organisation, UBS continually reviews its strategic needs and resources the businesses according to the environment and its outlook,' a UBS spokesman said in a statement.
'Asia Pacific remains a strategic priority for UBS, and a region in which the group will continue to invest,' she said.
UBS declined comment on the layoffs.
-- THOMSON REUTERS
- wong chee tat :)
UBS, the world's biggest wealth manager, has axed a team of six private bankers in Singapore, who were managing wealth for Turkish clients, sources familiar with the situation told Reuters on Monday.
UBS is struggling after losing billions in the risky US housing market, which forced it to obtain financial aid from the Swiss government.
The Singapore team was managing clients' assets worth between US$200 million (S$) to US$300 million and was hired from Swiss rival Credit Suisse two years ago, a source briefed on the situation said.
Singapore acts as an offshore booking centre for UBS' clients from Asia and Europe.
A second source said the firm has no plans to exit wealth management for Turkish clients despite the removal of the team in Singapore, which was done as part of a group restructuring.
'Like any organisation, UBS continually reviews its strategic needs and resources the businesses according to the environment and its outlook,' a UBS spokesman said in a statement.
'Asia Pacific remains a strategic priority for UBS, and a region in which the group will continue to invest,' she said.
UBS declined comment on the layoffs.
-- THOMSON REUTERS
- wong chee tat :)
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