Swiss banks are unfazed by uncertainty surrounding the US tax settlement with UBS, with many choosing to close the door on new or existing US clients and focus on business in Europe or emerging markets. “Looking to the future, the fastest-growing markets like the Far East, the Middle East and Russia are less affected by tax issues. We're looking to accelerate that side of the business,” said a spokesman for Julius Baer, Switzerland's largest dedicated wealth manager, on Friday, adding that the bank had little interest in growing its US business. Switzerland this week agreed to reveal the names of about 4,450 wealthy American clients of UBS to US authorities, leaving uncertainty over the ramifications for other banks. ‘The effects of the treaty between Switzerland and the USA on other Swiss banks, like for example Zuercher Kantonalbank, are difficult to estimate,' said a ZKB spokesman. ZKB would no longer deal with offshore US clients and would require US customers resident in Switzerland to show they were in compliance with US tax authorities, he added. Since UBS first came under the spotlight of the US taxman some Swiss private banks have significantly raised their disclosure requirements for U.S. clients or have even shut down their US client business altogether. Neue Zuercher Bank said it had closed its private banking business for US customers early this year and now has no American clients. The bank also fired a banker indicted on charges of helping wealthy Americans hide their assets from US tax authorities. Wegelin & Co, which was founded in 1741 and says it is Switzerland's oldest bank, has suspended the opening of new US client accounts.
