UBS AG and Indonesia

[Jon Levy]

We have an interesting case coming up in the 9th Circuit Court of Appeals next month, AM Trust (the estate of the former Indonesian Vice President Adam Malik) against UBS AG for conversion of many millions following his death from a dormant account. It is argued that the Swiss in the aggregate converted many billions of funds deposited by PEPs especially in the pre AML era when they died and relatives were too scared or didn't know about these low doc accounts. In this case the Malik family did have some documentation and UBS did admit Malik had been a client of SNB but then cited the bogus ten year rule claiming all record had been destroyed.

The case however was dismissed on the new Damiler rule that foreign corps can only be sued in these sort of circumstances where they are "at home" not where they do business. Interestingly, UBS was sentenced on February 5 to 3 years felony probation and a 203m fine in the LIBOR fixing case in Connecticut. So it will be argued a felon is at home where they are on probation.

Anyone have any insights into the above facts? If the case is dismissed, plaintiffs will refile in Switzerland.

Send me a Skype if you got anything as I do not check this forum very often.

[David Guyatt]

The old "10 year rule" documents destroyed dodge, eh. Very reminiscent of that scallywag, Franzo Grande Stevens, deploying the argument that the IOR routinely destroyed all records older than ten years in your Ustache/Vatican IOR class action law suit, Jon.

[Jon Levy]

Exact same. The Ten Year rule has to do with retention of records for taxes not banking accounts and we know neither SNB or IOR ever willingly destroyed anything of potential value. Not like PEPs who deposited into low doc accounts were ever going to pay taxes LOL.