Wegelin Bank, Switzerland's oldest, to close after admitting US tax evasion

[smurff]

http://www.guardian.co.uk/world/2013/ja ... ax-evasion

"In court papers, Bruderer said Wegelin "believed it would not be prosecuted in the United States for this conduct because it had no branches or offices in the United States and because of its understanding that it acted in accordance with, and not in violation of, Swiss law and that such conduct was common in the Swiss banking industry".

"Although Wegelin will cease to exist, the bank's partners sold its non-American client accounts to the Austrian bank Raiffeisen just before its indictment last January. Rakoff described the sale as a "fraud upon a fraud".

"William Sharp, a tax lawyer in Tampa, Florida, who advises many US clients of Swiss banks, described Wegelin's decision to change its plea to guilty as shocking and said it should serve as a wake-up call to foreign banks helping US clients to make sure they comply with US laws.

"SwissPrivateBank.com, a website Wegelin used to attract English-speaking clients, boasted that: "Swiss bank secrecy is not lifted for tax evasion … Neither the Swiss government nor any other government can obtain information about your bank account."

"Three of Wegelin's executives – Michael Berlinka, Urs Frei and Roger Keller – who were also indicted last year, are expected to avoid the charges because the extradition treaty between Switzerland and the US does not include tax crimes."

[Ad Orientem]

Wow! That is stunning news. Wegelin is HUGE in Swiss banking.