"Switzerland's UBS AG, which suffered the most in the U.S. subprime contagion, is planning to close as many as 19,000 accounts held by U.S. clients in a step to shut down its division in the country amid rising investigation pressure from the U.S. tax authorities.
UBS has been under the probe by the Internal Revenue Service for not properly reporting to the agency based on its banking secrecy laws, forcing the Swiss wealth manager to stop issuing offshore accounts to the U.S. citizens since July 2008.
The U.S. clients holding accounts managed by the firm in Switzerland will either require to transfer the assets to other banks or other divisions within UBS, or will mail checks directly to the account holders, a move that might create paper trails and give U.S. prosecutors information they need to track down tax evaders, according to a New York Times report Friday."