As U.S, investigations into UBS continue with allegations that the Swiss bank knowingly assisted wealthy Americans to hide their wealth in the offshore tax haven, other Swiss banks are showing signs that U.S. Citizens no matter how wealthy they may be just aren’t that appealing anymore.
Credit Suisse has already began a process of changing its relationships with U.S. Clients in preparation for future stricter taxation rules for U.S. Residents’ assets abroad.
Keen to avoid a similar high profile investigation Credit Suisse is writing to its U.S. clients with Swiss accounts and asking them to sign a form. The form simply called W9 will reveal all of their banking details to the U.S. Tax authorities.
Credit Suisse are hoping that the increase in transparency will keep them clear of any U.S. Investigative processes. It sends a clear message to U.S. Citizens, that Swiss private banking services in future can no longer be considered confidential in terms of keeping information hidden from U.S. tax authorities.
Up until now there is no disclosure agreement for U.S. Clients of foreign banks that do not hold U.S. Securities under the QI (Qualified Intermediary) agreement but U.S. Tax authorities are moving towards much tougher legislation.
A draft of the new QI agreement was published towards the end of last year. Swiss private bankers have been very critical of the proposed new rules and have suggested that they will force them to stop doing further business with U.S. Citizens.