Kenneth Rijock

Kenneth Rijock

Wednesday, September 12, 2012

WILL DISCLOSURE OF WHISTLEBLOWER PAYMENT EXPOSE MORE SWISS BANK TAX EVASION SCHEMES ?



The publicity generated by the disclosure that UBS whistleblower Bradley Birkenfeld has awarded the former private banker over one hundred million dollars could cause others with inside knowledge of Swiss bank tax evasion schemes to seek to cash in on their information, which would impact those banks still engaged in assisting US taxpayers to cheat the taxman. The news of Birkenfeld's payment  seems to have been placed on the front pages of major media.

Large fines and penalties, such as the $780m fine levied upon UBS by US regulators, could cause serious reputation damage to any Swiss bank unfortunate enough to be named and shamed, and cause massive depositor exits. Should there be a number of new cases, Country Risk for Switzerland would be affected. Cantonal and regional Swiss banks, some of which are believed to have picked up substantial US client business from the larger institutions, in the wake of the UBS scandal, could have profit issues if they are fined a large sum.

On a more basic level, the possibility of a million dollar payday could drive some bank staff right into the arms of US law enforcement agencies. Again, the issues here are resultant Reputation Damage, and an increase in Country Risk. We shall see if any other whistleblowers surface


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