Wegelin says to wait and see on new U.S. accounts

* Private bank wants clarity on proposed U.S. laws

* Bank has blocked new U.S. accounts in meantime

* Says hasn't closed existing U.S. client accounts

By Martin de Sa'Pinto

ZURICH, Aug 21 (Reuters) - Swiss private bank Wegelin & Co wants clarity on proposed new U.S. tax legislation before reopening its doors to new U.S. clients after a bitter tax dispute involving banking peer UBS, an executive said on Friday.

Wegelin, which was founded in 1741 and says it is Switzerland's oldest bank, suspended the opening of new U.S. client accounts when a U.S. Justice Department's investigation of Swiss banking peer UBS (UBSN.VX)(UBS.N) began. [ID:nLJ718259]

"We are not taking on any new U.S. clients until there is clarity from the U.S. regarding proposed new legislation on inheritance tax and qualified investor status," Steffen Tolle, head of client advisers, told Reuters.

In light of the UBS case, some Swiss private banks significantly raised their disclosure requirements for U.S. clients or even shut down U.S. client business altogether. [ID:nLK440710]

Another Swiss bank, Neue Zuercher Bank, said on Friday it shut down its private banking business for U.S. customers early this year and now has no American clients.

Wegelin said it had not needed to ask U.S. clients for more disclosure about their tax situation or the source of their wealth.

"We didn't alter our disclosure requirements, since we already asked the relevant questions from clients before opening accounts for them. However, in the past we have refused clients because of insufficient disclosure," said Tolle.

"While we didn't take new U.S. business, we haven't had to close out any existing U.S. clients," Tolle said. (Editing by Rupert Winchester)