LUZERN (Switzerland) - SWITZERLAND'S biggest bank UBS has uncovered a 'limited number' of tax fraud cases, the bank's chairman revealed on Thursday, saying that banking secrecy was not devised to shield tax cheats.

'Our investigations have uncovered a limited number of cases of tax fraud under both US and Swiss law,' Peter Kurer told shareholders during an extra-ordinary general meeting here.

'Contrary to the idea conjured up in public discussions, bank secrecy is not absolutely valid. It is not there to protect cases of tax fraud,' he added, as he defended the bank against accusations that it had violated bank-client confidentiality.

UBS has been embroiled in a US Justice Department investigation on whether it had helped American clients evade taxes.

In July, it said that it was halting its offshore banking services for US citizens.

Mr Kurer was speaking during an EGM held to obtain shareholders' approval on a state rescue package worth almost US$60 billion (S$90 billion). -- AFP