Bank secrecy maintained despite UBS deal: Swiss FinMin

BERNE (Reuters) - Swiss Finance Minister Hans-Rudolf Merz said on Thursday Switzerland's treasured banking secrecy remained in place despite a landmark UBS tax settlement that involved it handing over to Washington some client data.

Merz said, however, that Swiss bank secrecy was not there to protect tax fraud.

"It is evident there has been tax fraud (at UBS)," Merz said at a press conference with the foreign press.

"Bank secrecy will stay," said Merz, who is also scheduled to hold a separate press conference on the UBS settlement at 1330 GMT (8:30 a.m. EST).

Swiss law makes a distinction between tax fraud and tax evasion, the latter being a minor offence. Berne allows the transfer of bank client data only in clear cases of tax fraud.

The UBS tax settlement, announced late on Wednesday, came before an appeal process started by some U.S. clients of UBS against the data transfer could come to a conclusion.

(Reporting by Jonathan Lynn)