Swiss private bank Bank Frey is to cease its operations for allegedly helping Americans to avoid taxes.
Bank Frey said that the shareholders have decided to shut down operations because of the unsustainable costs and tough rules it needs to follow in the US tax evasion fight.
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Bank Frey & Co is among one of 14 Swiss banks ineligible for US Department of Justice’s (DoJ) recently offered Swiss banks unilateral programme because they are already involved in ongoing legal proceedings by US authorities.
The bank claimed that no charges have been filed against it but the US charged Stefan Buck, the bank’s former head of private banking as a part of the investigation.
Investigation into Bank Frey’s activities reported that 44% of the institution’s managed assets came from American clients as of September 2012.
Bank Frey closure follows that of Wegelin, which has closed down its activities after being investigated by the US.
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By GlobalDataBank Frey said that it is financially healthy and will not be liquidated.
"As a result of developments in recent years, circumstances and challenges have presented themselves, especially in Switzerland, that mean it no longer makes sense for a small bank to continue its cross-border services," chairman Markus A. Frey said.
