Swiss bank to stop doing business in the U.S.

Friday, August 28, 2009

Swiss Bank: "The U.S. overestimated its appeal as a Financial Center" and advises its customers to bring out all the Securities to resign.

The Swiss private bank Wegelin said Tuesday announced that they will stop doing business in the United States.

The oldest established bank in St Gallen in Switzerland said the decision was taken in response to stricter measures have been introduced in the U.S. against tax evaders and the proposed changes to inheritance tax, which some non-US citizens will be subject to tax if they U.S. securities have inherited.

In a letter to investors stated that Swiss banks themselves in an untenable position, because they are supposed to know what customers are subject to U.S. tax to pay - "an impossible undertaking, given the lack of clear definitions in the case .

"The danger of inadvertent false statements to the Internal Revenue Service will be great," said the letter.

It added that they believe that the U.S. is attractive as a financial center overestimated and advises its customers to step out of all U.S. securities.

The decision comes one weeks after the U.S. tax authorities reached a deal with the Swiss Government to ensure that the UBS bank details of almost 4500 suspected tax evaders handed.

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