Bank Wegelin, Switzerland’s oldest bank, has had to shut down because of criminal sentencing by the U.S. government for aiding U.S. citizens in tax evasion. The 272 year old bank thought they were in the clear since they did not have any branches outside of Switzerland but they found out the hard way how aggressive the U.S. government is in taxing its subjects and going after anyone who helps them avoid the confiscation.
It’s another example of just how far overreaching and criminal the government is getting.
International Man writes:
Imagine if China were the world’s dominant financial power instead of the US, enabling it to enforce its will and trample over the sovereignty of everyone else. Imagine that there were a group of Chinese citizens who banked with BNY Mellon (Bank of New York is the oldest bank in the US), that the bank had no branches outside of the US, and that it complied with all US laws. Suppose that through their business with BNY Mellon this group of Chinese citizens were breaking some draconian financial laws in China, but again complied with all US laws. In reaction to this, imagine if the Chinese government were to then seize BNY Mellon’s assets, criminally indict the bank and its employees, and effectively shutdown the oldest bank in the United States.
How would Americans react in such a scenario?
More importantly, how does the US government get away with such an obscene violation of another country’s sovereignty?
It’s simple: they control the world’s premier reserve currency. And as long as that is the case, they will continue to get away with similar measures.
The chilling effects of the Wegelin saga will no doubt ripple throughout the world.
If Switzerland’s oldest bank, which had no foreign branches and abided by all local laws, is able to effectively be shut down by the US government, then who is safe from the whims of this desperate and out-of-control government?
The Wegelin case will serve as a sobering example to business owners around the world of the consequences that can occur if you do not comply with the onerous and costly regulations concerning American clients.
We should expect the trend of foreign financial institutions and businesses shunning American clients and partners to accelerate.