Swiss bank UBS will relay details of American account-holders to the US Government in a bid to quash allegations of aiding tax avoidance, according to The Times.
As part of the deal struck between UBS, the Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) in a Florida federal court, it will pass the names and account information of select American customers of its cross-border business to the US authorities.
In addition, the bank will pay $780m in penalties, fines, interest and restitution, according to the paper.
UBS has previously admitted around 19,000 Americans with offshore accounts with its Zurich, Geneva and Lugano offices had colluded with bank staff to hide assets from the government.
Considered tax fraud by US and Swiss law the bank says it does not have to protect clients who have committed fraud under Switzerland's banking secrecy rules.
UBS chairman Peter Kurer says the bank accepts full responsibility for its behaviour which it 'sincerely regretted'.
Marcel Rohner, chief executive of UBS, says: "It is apparent that as an organisation we made mistakes and that our control systems were inadequate."
UBS has closed all US clients' offshore accounts last month as a precaution, it says.
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