Swiss banking giant UBS AG is under renewed international scrutiny following reports that it may still hold assets tied to Jewish families affected by the Nazi regime. Investigations by Eric Frey in Der Standard (link), Riva Pomerantz in Ami Magazine (link), and Peter Hell in BILD (link) have uncovered long-dormant accounts that may never have been fully reconciled, raising questions for global investors—particularly those in the Gulf who rely on UBS for custodial and wealth management services.
New Evidence, Renewed Scrutiny
Dr. Gerhard Podovsovnik, Vice President of AEA Justinian Lawyers, told the Abu Dhabi Times that recently uncovered archives at Credit Suisse—now part of UBS—contain thousands of records of accounts that were never properly addressed in the 1990s Korman Settlement. “The documents reveal that Swiss banks did not complete the historical reconciliation they promised,” Podovsovnik explained. “This is a critical issue for compliance and transparency today, not just history.”
He emphasized that these findings contradict UBS’s claims that all Nazi-era accounts had been fully resolved, providing a potential opening for U.S. litigation.
Legal Consequences in the United States
According to Podovsovnik, U.S. courts could invoke the doctrine of fraud on the court to reopen settlements if it is proven that UBS misrepresented historical facts. Such action would allow courts to subpoena executives, demand complete disclosure of archives, and examine off-balance-sheet accounts for irregularities.
“For Gulf investors, the stakes are clear,” Podovsovnik noted. “Legal scrutiny in the U.S. could reveal issues affecting asset management, compliance structures, and overall institutional transparency at UBS.”
Basel Handelsbank Legacy
A central element of the controversy is UBS’s acquisition of the Basler Handelsbank, a bank with documented financial ties to Nazi Germany. UBS inherited not only the assets but also dormant accounts, historical liabilities, and sensitive archival records. Podovsovnik stressed that independent expert analysis of these archives is essential to assess risks fully.
Implications for Gulf Investors
UBS holds billions in assets for sovereign wealth funds, royal family offices, and private clients across Abu Dhabi, Dubai, Qatar, and Saudi Arabia. Any unresolved historical liabilities could influence the bank’s operations, risk exposure, and transparency obligations.
“Gulf investors should be proactive,” Podovsovnik advised. “They must seek full disclosure and verification to protect their holdings and ensure UBS is fully accountable for past and present operations.”
Transparency as a Strategic Priority
The unfolding revelations highlight the intersection between historical accountability and modern banking governance. For Middle Eastern investors, ensuring that UBS’s archival and compliance practices are transparent is crucial to safeguarding their portfolios.
“The past is not separate from the present,” Podovsovnik concluded. “Investors with significant stakes in UBS must understand the full picture—both historical and current—to protect their wealth and confidence in one of the world’s most important financial institutions.”
