WASHINGTON – UBS AG, Switzerland`s largest bank, has reached a deferred lawsuit agreement for conspiracy to defraud the United States by obstructing the Internal Revenue Service (IRS), as the Department of Justice announced today. The case of HSBC Private Bank Switzerland SA in December 2019 is a recent example of a possible deduction of fines. The Swiss bank admits to helping U.S. taxpayers hide income and assets from the United States and agrees to pay a $192.35 million fine. The private bank today entered into a law enforcement agreement (DPA) with the Department of Justice in U.S. District Court for the Southern District of Florida. Given the Bank`s willingness to acknowledge responsibility for its actions and omissions, past cooperation and corrective action, and its promised cooperation and remedial action, the Government will recommend the rejection of the levy, provided the Bank fully meets its obligations under the agreement. Mechanisms such as contracts, agreements, protocols and information exchange agreements serve as alternative means of guaranteeing information abroad. The most important of these agreements is the Hague Convention. 222 Hague Convention on Obtaining Evidence Abroad in Civil or Commercial Matters, open for signature 18 March 1970, 23 U.S.T. 2555 [hereafter the Hague Convention]; See also Schmerler, 208, nr.
10-28, 10:7.2; Connorton, supra note 102, to 298. The Hague Convention describes procedures for obtaining extraterritorial evidence in civil and commercial matters. 223Vm. In some cases, the Hague Convention may be the only way for an applicant agency to obtain information from another country protected by privacy laws. 224Van Brauman, supra note 23, at 594. The United States, Switzerland and many other nations are parties to this agreement, 225 Hague conventions on obtaining evidence abroad in civil or commercial matters, Travel.State.Gov, travel.state.gov/law/judicial/judicial_689.html (the last visit took place on March 20, 2011). which provides for evidence, including documents held abroad. 226Schmerler, note 208, 10-28, 10:7.2. The Hague Convention creates a mechanism to account for differences between nations, while helping to discover foreign discoveries.
227 Detlev F. Vagts, William S. Dodge – Harold Hongju Koh, Transnational Business Problems 36 (4th edition 2008). The party seeking the discovery must file an application with the court where the case is going and seek court assistance with the application. 228Schmerler, note 208, 10-28, 10:7.2. The court then sends a letter of mutual legal aid to a foreign court in which documents from that jurisdiction are requested. 229 Id. The foreign court is required to comply with the request, unless the application is subject to three exceptions, one of which is the case for “the sovereignty or security of the foreign state.” 230 Id.
In many organizations, the question of whether and how to cooperate with regulatory authorities is an important part of risk management. Cooperation can take many forms depending on the regulator and jurisdiction. It is also important that the objective of regulatory control be aware of the consideration that may be available in exchange for cooperation. For example, deferred order-keeping agreements (“DSBs”), which are agreements that are generally collected but are cancelled after the company has met the requirements of the data protection authority (including cooperation with authorities and compliance with other conditions such as corrective action to combat wrongdoing) are not currently available in Canada. However, the federal government seems to be thinking about its usefulness. Similarly, securities market regulators have recently scheduled non-competitive comparisons.