Swiss banks give U.S. clients the boot

GENEVA, Switzerland, July 4 (UPI) -- Many Swiss bank executives have decided clients from the United States are not worth problems with U.S. tax authorities, banking officials said.

UBS is embroiled in a legal dispute with the U.S. Internal Revenue Service, which is seeking information on 52,000 clients, Swissinfo reported Friday. Other banks fear similar action would force them to open their books, the report said.

"We are recommending our banks not to open any new client relations to clients living in the U.S..," Stefan Kern, a spokesman for Bank Raffeissen, said. "The future procedures with the U.S. are unclear."

Andy Sundberg of American Citizens Abroad in Geneva said even U.S. citizens living in Switzerland have been having trouble opening bank accounts.

Lawrence Desmond, who holds dual citizenship, said UBS gave him 45 days to close his account or transfer it to a special unit registered with the IRS. Because he holds a Swiss passport, Desmond, who said he likes to keep some money is Switzerland as a convenience for his visits there, was able to open a post office account.