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The largest Swiss bank UBS has begun verification of Russian clients' compliance with the law on controlled foreign companies (CFC), a bank officer specializing in private banking told the Russian newspaper Vedomosti.
According to him, bank managers request Russian clients provide a copy of CFC notices. It is noted that the banks have not yet introduced formal requirements, but are set to do so in the short term. One of UBS clients admitted that he had had a conversation with a bank manager on this subject. He said he was warned that UBS standards are very high and the bank, biding by laws, would not cooperate with customers who violate the rules. A UBS employee confirmed that customers had been sent letters notifying of tax risks.
Same notifications have been sent to customers of Credit Suisse and Rothschild Group's Swiss-based branch since the beginning of 2016, according to a tax consultant at an audit company. The banks demand customers' reports on compliance with the law and statements that there are no claims from the tax authorities.
Representatives of Credit Suisse and UBS declined to comment, saying the banks "do not discuss issues that are related to their customers."
Rothschild Group did not respond either, Vedomosti wrote.
The tax consultant notes Switzerland has the most stringent compliance requirements. In addition, in September 2015, the country introduced criminal liability for assistance in tax crimes, not only in the territory of Switzerland but also throughout the world. This applies to any clients, not only those from Russia. In many cases, banks ask for the confirmation of a tax adviser that a client pays taxes, partner at PwC Ekaterina Lazorina said.
The new obligation regarding reports related to the activities of foreign companies may also be introduced in the United Kingdom and the Netherlands in 2016 if relevant changes to these countries' legislation are adopted. Such measure aims to help tax authorities identify those who hide their assets.