Ethics and governance in the European Financial centers

Saturday's Globe and Mail has reported that the United States appears to have forced open a crack in the fortress-like protections the Swiss government grants clients of its country's banks, a victory that could upend the business of dodging domestic levies through international tax havens.

UBS would escape fine but would provide 5000 names.

If the Swiss can be broken, anyone can be broken," said Reuven Avi-Yonah, a University of Michigan professor who has advised the U.S. Treasury on international tax law. "Other tax havens don't have the diplomatic clout of Switzerland."

Raymond Baker, director of the Global Financial Integrity, an organization that works to end illegal international money transfers, said it's critical that U.S. officials push for greater information sharing so tax evasion and other financial crimes can be investigated.

"What happens with the UBS case will be noted around the world, but what will set a true precedent for tax havens around the world is what we do next," Baker said (Source : AP).