Swiss banking giant UBS AG is facing renewed international attention following new findings that suggest it may still hold assets linked to Jewish families whose wealth was seized during the Nazi era. Investigative reporting by Eric Frey in Der Standard (link), Riva Pomerantz in Ami Magazine (link), and Peter Hell in BILD (link) have exposed archival evidence pointing to accounts that may never have been fully reconciled. For investors in the Gulf who rely on UBS for managing sovereign, family, and private wealth portfolios, the revelations raise both historical and contemporary concerns about asset security and institutional transparency.
Rediscovered Archives and Unresolved Accounts
Dr. Gerhard Podovsovnik, Vice President of AEA Justinian Lawyers, explained in an exclusive interview with Abu Dhabi Times that recently uncovered archives at Credit Suisse—now integrated into UBS—contain thousands of files documenting accounts that were excluded from the Korman Settlement of the 1990s. These records include detailed account ledgers, internal memoranda, and correspondence indicating that the bank may have accrued interest and fees on assets without proper restitution to rightful heirs.
“Swiss banks, including UBS, never fully completed their obligations regarding these historical accounts,” Podovsovnik said. “The implications are far-reaching, because this is not only about past mistakes—it impacts how these institutions are held accountable today.”
Podovsovnik emphasized that these findings directly challenge UBS’s long-standing public statements claiming that all Nazi-era accounts had been resolved. This discrepancy opens the door for renewed legal scrutiny, particularly in U.S. courts where procedural mechanisms exist to address potential fraud on the court.
U.S. Legal Action and Implications for Gulf Investors
According to Podovsovnik, if UBS knowingly misrepresented the resolution of these accounts, U.S. courts could compel comprehensive disclosure of documents, subpoena executives, and investigate off-balance-sheet accounts. The doctrine of fraud on the court provides a powerful mechanism to reopen settlements and demand transparency from global financial institutions.
“This is highly relevant for Gulf investors,” Podovsovnik said. “UBS manages billions of dollars in sovereign wealth funds, royal family offices, and high-net-worth private portfolios in Abu Dhabi, Dubai, Qatar, and Saudi Arabia. Any unresolved historical liabilities could have ripple effects on modern portfolio security, compliance structures, and operational integrity.”
The stakes are particularly high because these accounts are tied to historical liabilities that UBS inherited from its acquisition of Basler Handelsbank, a bank with documented financial ties to Nazi Germany. This inheritance included both assets and obligations, as well as extensive archival records that remain largely unexplored. Podovsovnik insists that independent experts must examine these archives to assess the full scope of risk and ensure that no historical negligence continues to compromise present-day operations.
For Gulf investors, the revelations underscore the strategic importance of demanding transparency and full accountability from UBS. The potential reopening of U.S. litigation could shed light not only on historical accounts but also on current risk management practices, off-balance-sheet holdings, and compliance mechanisms affecting millions in discretionary and custodial assets.
“This is a critical moment for investors,” Podovsovnik concluded. “Transparency is the only way to ensure that past mistakes do not compromise current portfolios. Gulf investors have both the leverage and responsibility to seek full disclosure before courts enforce it.”
The unfolding UBS situation illustrates the intersection of historical accountability and contemporary financial governance. For investors across the Middle East, the case highlights the need to actively monitor both legacy and current practices to protect wealth, maintain trust, and mitigate potential institutional risk.
