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This weekend could see the beginning of the end of Switzerland's banking sector — an industry famous for being secretive.
Swiss banking giant UBS is poised to hand over the names of 500 suspected American tax dodgers to the authorities. Europeans are pulling their money out of the country in fear that they could be next to be outed.
UBS's landmark settlement deal with the US Government — agreed earlier this year under huge pressure — begins in earnest in the next two days.
It will see the bank pass details of clients to the Internal Revenue Service, who will in turn pursue the individuals for tax owed going back over years.
European clients have been coming clean to their own governments in the past few weeks, fearful that they will strike similar deals with UBS to the Americans.
The Wall Street Journal today reports that there is an “exodus” of European money from Switzerland.
Philip Marcovici of law firm Baker & McKenzie in Zurich said: “It's a big mistake to say this is an American issue. The Europeans are right around the corner.”
The settlement deal with America is seen as the final nail in the coffin for Switzerland's prized bank secrecy and will have far-reaching consequences for the whole offshore financial industry.
