New tax regulations have proven too complicated and expensive for a small bank in Switzerland.
The shareholders of Bank Frey & Co. have voted to close the private bank, which has been included in a probe of Swiss banks accused of helping American citizens evade U.S. taxes. The move came despite the bank’s otherwise “healthy” finances, the Associated Press notes.
American and Swiss regulators negotiated an agreement over the summer that would impose new restrictions on Swiss banks with American customers. Under the deal, the banks will have to release information on clients and their holdings. Some banks will be penalized for past actions.
Wegelin & Co., the country’s oldest private bank, shut down earlier this year due to fallout from the investigation. Bank Frey had been associated with Wegelin.
American authorities are scrutinizing 14 financial services providers in Switzerland over the tax allegations.
In July, a $1.2 million was stolen from a Swiss Air Lines flight between Zurich and New York’s John F. Kennedy International Airport. The money was part of a $94 million shipment of cash destined for the Federal Reserve Bank of New York.