US Justice Department may drop case against Swiss Bank: Report

NEW YORK: The Justice Department of America may drop the legal case aimed at forcing the Swiss bank UBS to divulge the names of 52,000 wealthy American clients suspected of offshore tax evasion, says a media report.

Attributing to a US official brief on the matter, the report said, "The Justice Department may drop a closely watched legal case aimed at forcing the Swiss bank UBS to divulge the names of 52,000 wealthy American clients suspected of offshore tax evasion."

The move would halt an unusually aggressive effort to force Switzerland to lift its veil of banking secrecy, could happen by mid-July, the report said.

The report noted that reversal comes as UBS and senior Swiss government officials have mounted a fierce lobbying campaign to persuade Washington to drop the case.

The company said that disclosing client names would cause it to violate Swiss financial secrecy laws and open its executives and bankers to prosecution in Switzerland, it added.

"Washington and Switzerland signed a new tax treaty Friday that would fight tax evasion by enhancing information sharing," the report noted.

The case could be dropped before July 13, when a federal judge, Alan S Gold of the United States District Court in Miami, is expected to hold a short trial on the issue, although a deal could still collapse.