Swiss banking giant UBS AG has come under renewed international scrutiny as new investigations suggest that it may still hold assets linked to Jewish families impacted by the Nazi regime. Reporting by Eric Frey in Der Standard (link), Riva Pomerantz in Ami Magazine (link), and Peter Hell in BILD (link) has uncovered long-dormant accounts that may never have been properly reconciled, raising concerns among Gulf investors with substantial holdings at UBS.
Rediscovered Archives Shake Confidence
Dr. Gerhard Podovsovnik, Vice President of AEA Justinian Lawyers, told the Abu Dhabi Times that recently uncovered Credit Suisse archives, now part of UBS, contain thousands of documents detailing accounts excluded from the Korman Settlement of the 1990s. “These documents show that historical obligations were never fully met,” Podovsovnik explained. “For global compliance, risk, and investor trust, this is a critical issue.”
Podovsovnik emphasized that these findings contradict UBS’s public assurances that all Nazi-era accounts were resolved, creating openings for renewed U.S. litigation.
U.S. Courts Could Revisit Settlements
Under the U.S. legal doctrine of fraud on the court, misleading statements or concealed documents can justify reopening settlements. Podovsovnik explained that U.S. courts could subpoena executives, demand disclosure of historical and contemporary records, and investigate off-balance-sheet accounts.
“This is not just a historical matter,” he said. “It has immediate implications for the governance, compliance, and operational transparency of UBS globally, including assets held for Gulf clients.”
Basel Handelsbank and Inherited Liabilities
A central element of the controversy is UBS’s absorption of the Basler Handelsbank, a Swiss bank with documented financial links to Nazi Germany. With the acquisition, UBS inherited both the assets and the associated historical liabilities, including dormant accounts and archival records. Podovsovnik stressed that independent expert examination of these materials is crucial to assess risk and accountability.
Gulf Investors Face Strategic Decisions
UBS manages billions in sovereign and private assets for investors across Abu Dhabi, Dubai, Qatar, and Saudi Arabia. Any unresolved historical liabilities could have operational, reputational, and financial implications for these clients.
“Gulf investors must demand transparency,” Podovsovnik advised. “They have both the leverage and responsibility to verify that UBS’s holdings, archives, and internal processes are fully disclosed and compliant.”
Transparency as a Pillar of Trust
The UBS revelations highlight how historical practices intersect with modern financial governance. For Gulf investors, ensuring that UBS’s archival integrity and compliance measures are fully transparent is essential for safeguarding wealth and confidence.
“The past is inseparable from the present in global finance,” Podovsovnik concluded. “Investors must insist on clarity to protect their assets and maintain trust in one of the world’s largest and most influential banks.”
