The US is currently carrying out investigations into Russian clients of UBS. The purchase of Credit Suisse changed the situation completely, strengthening control over one of the largest managers of assets.
The Office of Foreign Assets Control (OFAC) has recently sent a letter to UBS as part of the investigation, holding talks with the bank. The inspection is aimed at identifying the clients from Russia, being the responsibility of UBS after the rescue of Credit Suisse. UBS is trying to limit the possible ramifications of requests made by the OFAC by closing accounts and blocking suspicious assets.
Although the OFAC praised UBS for cooperation, the OFAC officials added that the US might punish UBS in case of its failure to deal with the sanctions. The official regulator in Switzerland monitors the way how UBS interacts with clients of Credit Suisse and how it sticks to anti-money laundering policies since the Swiss regulator is concerned that the bank may assist risky clients in conducting their illegal activities.
It is unknown how much risky Russian money UBS currently holds because Switzerland and the US have experienced a conflict over efforts to search for and find money of Russian clients. One of the most critical complaints made by Washington is that Switzerland has not adopted a law, requiring the identification of real ownership of assets, for example, a company or an apartment. It will show when the owner is subject to restrictions.
The Federal Department of Finance will soon have some discussions regarding government proposals to establish registers of owners of funds and firms and create tougher anti-money laundering restrictions for lawyers. Eventually, the election of Donald Trump may lead to a change of policy concerning sanctions against Switzerland or Russia.
