US tax dispute forces private bank to close

By in

usAfter the tax evasion prosecution in January the oldest Swiss Bank Weigelin closed, now Frey & Co a small Swiss Private Bank will close due to increased US regulation over alleged tax evasion, resulting in increased costs to an unsustainable level. Chairman Markus A. Frey is quoted as saying ‘As a result of developments in recent years, circumstances and challenges have presented themselves, especially in Switzerland, which means it no longer makes sense for a small bank to continue its cross-border services’ he then went on to say ‘Bank Frey will therefore cease its operative business activities as a bank,’ Switzerland and the US have been quarreling since 2010, when the US started to put pressure onto Switzerland’s banking secrecy laws in an attempt to identify possible U.S. tax evaders. The ever-growing regulations and the increasingly difficult market conditions make it simply unsustainable for the small bank to continue as it is, however what does remain of the bank is still financially healthy and the bank has stressed that the decision was ‘taken voluntarily and as a result of an analysis’ After signing an agreement with the Organization for Economic Cooperation and Development (OECD) last week agreeing to exchange data with 60 member countries, Switzerland has been seeking to become more transparent.