More Swiss banks restrict US business

Two more Swiss banks have decided to scale down their services to United States-based clients in light of an ongoing tax evasion case that threatens banking secrecy.

Zurich Cantonal Bank (ZCB) will close investment accounts of US domiciled customers while Migros Bank said it would not act on client instructions issued from the US. The US authorities are currently demanding the details of 52,000 UBS bank customers.

ZCB and Migros Bank have joined a growing list of Swiss banks that are cutting down on the range of business they offer US-based clients. They are fearful of running into the same legal and image problems that face UBS.

A Miami court will reconvene on August 3 to rule whether UBS must break Swiss banking secrecy laws by revealing confidential information on 52,000 clients. UBS, the world’s second-largest wealth manager, has lost business since the legal case started.

The Tages-Anzeiger newspaper of Zurich revealed on Friday that ZCB will close all investment accounts of US domiciled clients by the end of the year. The bank added that it was reviewing its policy concerning deposit and saving accounts.

Migros Bank, owned by the supermarket chain of the same name, will no longer act on instructions issued by telephone, email or post from US-based clients. In essence, such customers would have to travel to Switzerland to see their orders carried out.

Many Swiss citizens living in the US have been affected by the clampdown on services offered by several Swiss banks.

swissinfo.ch