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JEWS

Banks pay heirs of dormant Swiss accounts

Swiss banks paid just over $6 million last year to the heirs of people who left dormant accounts under a system created after a scandal over money left by Jews during the Second World War.

Banks pay heirs of dormant Swiss accounts
Counter hall in Zurich of UBS, Switzerland's largest bank. Photo: UBS

The banks paid out 5.81 million francs ($6.1 million), Switzerland's banking ombudsman said in its annual report released on Thursday.

Last year a total of 32 heirs received money from dormant accounts, as well as the contents of two bank safes
   
All the funds had been banked after the war.
   
Since 2001, about 303 heirs have received funds worth a total of 42.9 million francs.
   
Heirs who believe that dead relatives may have had money in Switzerland have been able since 1996 to apply to a special office which tracks down long-forgotten accounts.
   
The system was set up amid a scandal over the failure of Swiss banks to release funds owned by Jews who had hidden money in secret accounts in neutral Switzerland but then perished in the Holocaust.
   
Most of the beneficiaries last year were from Europe, with six of the 32 cases concerning French citizens, and a similar number, Germans.
   
Under Swiss law, banks must inform a central search office if they have had no contact with a customer for the past ten years.
   
The ombudsman said that it often received search requests from heirs a few months after a relative had died, but underlined that potential accounts would not be considered dormant until a decade had elapsed.
   
It pointed to a typical case in which the search process took up to five years, and resulted in a six-figure sum being paid out to the heirs, who decided to give it to charity.
   
Last year, five percent of search requests concerned potential pre-war bank accounts.
   
The ombudsman's office said that such search were carried out even though the likelihood of finding any money was minimal, given that in 1997, Swiss banks had published a list of pre-war accounts to facilitate claims.

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JEWISH

Rothschild heir makes early win in legal battle with Vienna

A descendent of the Austrian branch of the prominent Rothschild family has claimed an early victory in his court battle over a medical trust set up by his ancestors, seized by the Nazis, and now run by the City of Vienna.

Rothschild heir makes early win in legal battle with Vienna
Geoffrey Hoguet, an American, is suing the Austrian authorities for control of the trust, which he claims is worth up to €110m (£98m).
 
Now a court has backed a claim of Hoguet's legal team that the city of Vienna's management of the trust represents a conflict of interest, ruling  that an independent “collision curator” be appointed to represent the charity in legal proceedings. 
 
“The decision is an important first stage win in our legal battle with the city of Vienna to correct the course of Nazi-era injustices endured until today,” Hoguet said. 
 
 
“In doing so the court recognises the improprieties conducted by the city of Vienna since the Nazi usurpation of that foundation in 1938.”
 
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The Nathaniel Freiherr von Rothschild foundation was established  in Vienna in 1907 by Albert Freiherr von Rothschild, fulfilling the wish of his brother Nathaniel that a trust be set up in his name to treat patients with mental illness. 
 
By the time it was seized by the Nazis in 1938 it had a large endowment and two clinics, the Maria-Theresien-Schlössel, which was houses in an 18th century palace, and the then newly built Nervenheilanstalt Rosenhüge. 
 
The clinics were seized under the “aryanisation” process when the Rothschild family, one of Europe's most prominent Jewish families, fled the country. 
 
In 1956, the Endowment was re-established in accordance with its old charter but with the City of Vienna entrusted itself to administer the endowment´s assets.
 
In 2002, the city sold the palace housing the Maria-Theresien-Schlössel for a price Hoguet argues was beneath its market value. 
 
The foundation now leases its one remaining clinic to a public hospital for a nominal sum, with all references to the founding family stripped from the building. 
 
“I went back in February and walked around the campus [of the hospital], and there wasn’t one reference to the family’s name,” Hoguet told The Guardian newspaper. 
 
On the website set up by Hoguet's campaign, he claims he is not interested in making gains for himself personally.  
 
“In challenging the City of Vienna to address this grevious wrong, we seek no personal profit,” he said. 
 
“This is not about taking back personally what was stolen; this is about having the Endowment serve its original purpose: to support those Austrians with psychological challenges with the professional attention they need.” 
 
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