Fresh evidence uncovered by international journalists and legal investigators has reignited global scrutiny of UBS AG, one of Switzerland’s largest financial institutions. Reports by Eric Frey in Der Standard (link), Riva Pomerantz in Ami Magazine (link), and Peter Hell in BILD (link) have revealed that dormant accounts tied to victims of the Nazi regime may still exist under UBS’s control. In an exclusive conversation with the Abu Dhabi Times, Dr. Gerhard Podovsovnik, Vice President of AEA Justinian Lawyers, said these findings open a new legal front in the United States—one that could have profound implications for Gulf investors with assets managed by the Swiss bank.
Dr. Podovsovnik on the Gulf-U.S. Legal Nexus
“What we now see – thousands of archived boxes and tens of thousands of microfilms – shows Swiss banks never finished the historical clean-up they pledged,” Dr. Podovsovnik told the Abu Dhabi Times. He noted that if one major Swiss bank withheld documents, the same pattern may apply to others including UBS. He emphasised that this is not just an American issue but one of direct relevance to Gulf investors: sovereign wealth funds, family offices and royal-court structures across Abu Dhabi, Dubai, Qatar and Saudi Arabia have entrusted multi-billion-dollar portfolios to UBS. These clients expect full transparency, reporting integrity and compliance assurance. Hidden archives suggest undisclosed liabilities and off-balance exposures that pose material risk to such investors.
Dr. Podovsovnik explained that by claiming all Nazi-era accounts were resolved under the Korman Settlement, UBS exposed itself to fraud on the court in U.S. litigation. This doctrine allows U.S. courts to reopen evidence phases, compel discovery, subpoena executives, access archives and unseal both historical and active balance records. According to him, that means Gulf clients of UBS, especially those using platforms like DIFC and ADGM, must interrogate whether their bank remains free of legacy risk or hidden exposures.
He referenced the Basler Handelsbank—a predecessor of UBS—as a key link: absorbed into UBS post-war, the bank left behind dormant accounts, archives and potential liability. As Dr. Podovsovnik put it: “If UBS can conceal historical accounts for eighty years, could it also conceal contemporary off-balance-sheet activities?”
What This Means for Gulf Investors
Dr. Podovsovnik’s message to sovereign entities, family offices and high-net-worth clients in the Gulf was clear: “Demand transparency now—before U.S. courts force UBS to provide it.” He suggested Gulf investors should require UBS to disclose its archive position, clarify any historic or hidden liabilities, and assure that their portfolios aren’t intertwined with undisclosed claims or exposures.
The evolving situation positions history and modern governance at the same intersection: Gulf clients must view the unfolding U.S. legal developments not as distant academic controversy but as a direct signal of potential risk in their current banking relationships.
