U.S. moves toward legal action against Swiss bank – sources
Baku, January 9 (AZERTAC). U.S. authorities are moving toward taking legal action against Wegelin & Co, which could lead to an indictment of one of Switzerland`s last pure private banks, on charges that it enabled wealthy Americans to evade taxes, according to two persons with knowledge of the case.
Negotiations in the case have reached a critical stage, with an indictment possible though the bank is seeking a deferred prosecution agreement, which would be less damaging. The outcome depends on how prosecutors, the U.S. State Department and the U.S. Treasury Department agree to treat the matter, the sources said.
Founded in 1741, Wegelin is one of Switzerland`s oldest banks. An indictment of it would be a blow to a national tradition of banking secrecy that dates back to the Middle Ages. It would be a step forward for a U.S. crackdown on offshore tax evasion by Americans through Swiss banks.
The crackdown started around 2007 with an investigation of UBS AG , Switzerland`s largest bank. It has since spread to the entire Swiss banking industry. Dozens of U.S. clients and at least two dozen Swiss bankers have been charged, in moves that have strained U.S.-Swiss relations.
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