UBS says IRS has 20 Swiss banks in its sights

Embattled UBS AG has warned that Switzerland's financial industry is at risk unless lawmakers approve a tax treaty with the U.S., and that other Swiss banks may be next to face pressure from American regulators.

In a letter to parliamentarians, the banking company said the U.S. Internal Revenue Service has collected information on the cross-border activities of about 20 Swiss banks and may press for a crackdown on American tax evaders at these institutions as well.

UBS urged parliament to approve an August treaty signed by the U.S. Treasury Department and Switzerland's executive Federal Council on improving cooperation in tax evasion matters.

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