WSJ: Swiss banks turning nose up at suspicious clients

ZURICH—Swiss banks such as UBS AG are getting tougher with European clients they suspect of dodging home-country taxes, a move that could mark the beginning of the end of this country’s mysterious yet lucrative global franchise.

Many Swiss banks conspicuously kicked out their American clients last year after U.S. authorities discovered employees at UBS were helping Americans avoid the tax man.

The banks, which have long allowed foreigners to evade taxes by hiding behind stiff Swiss bank-secrecy laws, weren’t as rigorous with European clients who represent a much larger part of their business, industry experts say.

Wealth

Will California’s ‘billionaire tax’ trigger an UHNW exodus? Wealth managers weigh in

As trillions move to the next generation, GCC families face unprecedented pressure to plan succession sooner rather than later

Wealth

Succession planning in the GCC: Experts warn families can no longer afford to delay

Panellists at the Spear’s Summit highlight Abu Dhabi’s growing appeal as a base for family offices managing capital and making day-to-day investment decisions

Wealth

Abu Dhabi’s family office boom: why the emirate is attracting active global investors

Now, other European governments appear bent on following the U.S. lead to break Switzerland’s status as a tax haven. That pressure is prompting Swiss banks to become snoopier with clients in Europe—even as such prying represents a change from the banks’ legendary discretion and can cut their profitability.

To read the full story, visit wsj.com