The Justice Department on October 22 dismissed criminal charges against the Swiss bank, UBS AG, which had been accused of helping thousands of Americans evade US taxes in the billions of dollars by concealing their assets in foreign accounts , The dismissal of the criminal chargers is part of UBS’ complying with an 18-month deferred prosecution agreement , which required UBS to pay $780 million in fines and taxes, exit the U.S. cross-border banking business, and turn over over account information of about 250 American clients. Based on such compliance with the DPA, the prosecutors moved to dismiss the criminal charges. According to the motion, UBS has met all the conditions set forth in the DPA.
The Department of Justice had filed the DPA on February 18, 2009. The next day, the DOJ asked a federal district court to enforce the government's John Doe summons, which would have required UBS to divulge the names of as many as 52,000 taxpayers. In August, UBS further agreed to turn over the names of 4,450 account holders.
As many tax practitioners are aware, the Department of Justice, Criminal Tax Division, is continuing in its efforts to file similar legal actions and proceedings against other so-called tax haven banks in other countries or parts of the globe in continuing to flush out U.S. tax evaders.