On 2 February 2012 Wegelin & Co. was indicted for conspiring with United States taxpayers and others to hide more than $1.2 billion in secret accounts and the income these accounts generated from the Internal Revenue Service (IRS). At the same time, the US government seized more than $16 million from Wegelin’s correspondent bank account in the United States.
In January 2012, Wegelin & Co. moved most of its employees, along with its non-US clients and assets to Notenstein Privatbank.
In January 2013, Wegelin Bank pleaded guilty to allowing more than 100 American citizens to hide $1.2 billion from IRS. Although this practice is legal under Swiss law, the bank agreed to pay $57.8 million in fines to the United States authorities. At about the same time Wegelin & Co. announced that it would close.
Wegelin & Co. Privatbankiers, Gesellschafter Bruderer, Hummler, Tolle & Co. participates in deposit guarantee scheme of Switzerland. This scheme covers accounts up to 100 000 CHF per bank per depositor.
Wegelin & Co. Privatbankiers, Gesellschafter Bruderer, Hummler, Tolle & Co. was headquartered in St. Gallen.
|Yes (up to 100 000 CHF per depositor)|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
All credit institutions operating in Switzerland are obliged to participate in Swiss deposit guarantee scheme.
In the case of Wegelin & Co. Privatbankiers, Gesellschafter Bruderer, Hummler, Tolle & Co. failure, eligible depositors having covered accounts in this bank will be paid out the following compensation:
|Eligible Depositors||private individuals, commercial enterprises and public-sector offices|
|Covered Accounts||credit balances (e.g. personal accounts, savings accounts, investment accounts, salary accounts, numbered accounts, deposit accounts and current accounts)|
|Maximum Protected Amount||100 000 CHF|
|Paid In Currency||CHF|