Swiss Parliament recommends UBS accounts be handed to US

A Swiss Parliamentary committee has recommended that UBS hand over details of account holders to settle a potential law suit against the bank. The accounts belong to almost 4,500 US UBS customers suspected of using the bank to avoid paying tax.

Reports claim that the lower house of the Swiss Parliament is due to hold a debate while some commentators have also called for a public referendum on the matter, which would see Swiss secrecy laws changed if the accounts were to be published.

A referendum is expected to delay a potential agreement being made by several months.

Simonetta Sommaruga, a Social Democratic lawmaker said: “The fact is that if UBS has a problem, Switzerland has a problem too.

“That’s why we have to help out UBS with this settlement. A rejection would cause considerable damage to the economy.”

The US authorities launched legal action against UBS during February of 2009, claiming that the bank had helped as many as 50,000 clients avoid paying tax through its accounting system.

However, the government agreed to abandon suing UBS in return for the disclosure of the details of a number of clients.

Bank Operations - HSBC managers now talk to customers via webcam

HSBC has introduced a new consultation service that allows Premier customers in Hong Kong to hold virtual meetings with the company managers online. Customers are able to get access to the Live Connect service through the bank's Web site, clicking on a button to open a window containing a real-time view of their relationship manager.

Speaking to the managers via a webcam and computer speakers consumers can ask their questions and get instant financial advice on products.

While at the initial stage the service is being launched for Premier customers, eventually it will be extended to all sites in Hong Kong by the year end.

HSBC also launched Let US Call You service that allows customers leave their request online and be recalled immediately by the bank representative who will speak the language specified by a consumers on the website.

Credit agency regulator proposed by EU

The European Union (EU) has proposed the creation of a new regulator to monitor the actions of credit rating agencies within the eurozone.

According to reports, the new European Securities and Markets Authority would have oversight for agencies operating within the territory as well as offices outside the EU. The step follows criticism leveled at agencies, which suggested the current debt crisis within the EU has been worsened by their grading.

A second piece of proposed legislation calls for an overhaul of the way banks are managed, which included analyzing how corporate boards are established and remuneration processes for top bankers.

Michel Barnier, EU financial services commissioner, said: “The changes to rules on credit rating agencies will mean better supervision and increased transparency in this crucial sector.

“But they are only a first step. We are looking at this market in more detail.”

The new agency would see national bodies transfer their supervisory powers to it under the terms set out by the EU.

Heads of member states are expected to discuss financial regulation when they meet at the G20 summit in Canada later on in June.

Remittances - MoneyGram expands in Nigeria

MoneyGram International has announced that it will provide money transfer services at more than 500 First Bank of Nigeria locations across the west African nation. The agreement with First Bank of Nigeria PLC expands MoneyGram's presence in Nigeria, which dates to 1998.

First Bank, established in 1894, is Nigeria's oldest bank, with one of Nigeria's largest networks, MoneyGram said.

Nigeria, Africa's most populous nation, is ranked among the world's top 10 receiving countries for money transfers, MoneyGram said. The World Bank estimates that $10 billion in remittances was sent to Nigeria last year, with the U.S. the primary sending country.

Nigeria is widely recognized as the country of origin of many e-mail scams and financial fraud operations involving money transfers.

Company spokeswoman Lori Burzynski said MoneyGram data show that less than one-half of 1 percent of the company's total transactions represent third-party fraud. She said MoneyGram has committed "significant resources to building a state-of-the-art consumer anti-fraud program, and we continue to improve the program."

Operations Risk: Ex- Bank of America call centre worker pleads guilty to selling client details

A call centre worker formerly employed by Bank of America (BoFA) Merrill Lynch has pleaded guilty to stealing and subsequently attempting to sell customer details.

According to court records, Brian Hagen recorded information of accounts at a call centre in Florida where he was employed. The former BoFA staff member is believed to have taken details of the bank’s clients including names, addresses and birth dates.

Mr Hagen was caught out after he met with undercover agents from the Federal Bureau of Investigation, whom he thought were looking to source data on individuals with a high-net worth.

The ex-employee thought he may take as much as 25 per cent of the proceeds of the scam, the court documents showed.

However, Adam Allen, the defendant’s attorney, said: “Mr Hagen has worked in the banking industry since he was 17 years old and the conduct in this case constitutes an isolated incident for which Brian deeply regrets.”

Although the defendant could face a maximum of 30 years in prison and a $1 million fine, his guilty plea is expected to reduce the size of his potential punishment.

Citibank launches contactless payments stickers

US banking giant Citibank has begun offering customers contactless payments stickers that can be attached to the back of mobile phones.

Citi has quietly rolled out the option for customers who request it via the bank's Web site, using the tag-line: "The back of your phone just became its coolest feature".

The Citi payment tags, enable customers to make payments of up to $50 at the point of sale at MasterCard PayPass readers.

It is linked to customers' Citi credit card accounts with purchases appearing on monthly statements.

SEPA migration deadlines: Possible end dates floated

With SEPA-compliant transaction volumes still weak, Harcus Cooper of Barclays is forecasting the introduction of phased end-dates for mandatory conversion to the new EU-wide payment instruments, with credit transfers expected to get the nod in 2013 and direct debits by 2015.

The SCT scheme was introduced in early 2008, yet, according to ECB figures, two years later it accounted for just 7.5% of credit transfers in the Euro area. SDD take-up has been equally sluggish - at the recent EBAday it was noted that a paltry 200 SDD transactions per day, globally, go through EBA Clearing.

Cooper, who is Barclays' senior product manager on SEPA, was speaking at a payments event in London. He noted that many corporates are having trouble justifying the business case for SEPA in the absence of a firm migration deadline away from legacy infrastructure.

The Experian event takes place just a week after the European Commission and European Central Bank hosted the first meeting of the SEPA Council, a new body created to guide the future development of the project which has been dogged with criticism.

The meeting is understood to have seen broad consensus reached that January 2013 would be a likely end date for credit transfers with direct debits following in 2015.

It has long been acknowledged that deadlines are necessary. Last March ECB executive board member Gertrude Tumpel-Gugerell warned: "We need a migration end date from which on onwards only the European payment instruments will exist. We all know that it is inefficient and costly if two schemes continue to run in parallel for a prolonged period of time".

After talks with stakeholders last year saw widespread support for deadlines, the move appeared to gain impetus, with the EC initiating talks with member states in November yet final dates have still not been set.