UPDATE 2-Swiss banks look past U.S clients for growth

* Some banks ditch existing U.S. clients, close accounts

* Far East, Middle East and Russia less beset by tax issues

* Unfazed by talk of possible EU action

(Recasts; adds Julius Baer, ZKB, Pictet comment)

By Martin de Sa'Pinto and Jason Rhodes

ZURICH, Aug 21 (Reuters) - Swiss banks are unfazed by uncertainty surrounding the U.S. tax settlement with UBS, with many choosing to close the door on new or existing U.S. clients and focus on business in Europe or emerging markets.

"Looking to the future, the fastest-growing markets like the Far East, the Middle East and Russia are less affected by tax issues. We're looking to accelerate that side of the business," said a spokesman for Julius Baer (BAER.VX), Switzerland's largest dedicated wealth manager, on Friday, adding that the bank had little interest in growing its U.S. business.

Switzerland this week agreed to reveal the names of about 4,450 wealthy American clients of UBS(UBSN.VX)(UBS.N) to U.S. authorities, leaving uncertainty over the ramifications for other banks. [ID:nLJ718259]

"The effects of the treaty between Switzerland and the USA on other Swiss banks, like for example Zuercher Kantonalbank, are difficult to estimate," said a ZKB spokesman.

ZKB would no longer deal with offshore U.S. clients and would require U.S. customers resident in Switzerland to show they were in compliance with U.S. tax authorities, he added.

Since UBS first came under the spotlight of the U.S taxman some Swiss private banks have significantly raised their disclosure requirements for U.S. clients or have even shut down their U.S. client business altogether. [ID:nLK440710]

Neue Zuercher Bank said it had closed its private banking business for U.S. customers early this year and now has no American clients. The bank also fired a banker indicted on charges of helping wealthy Americans hide their assets from U.S. tax authorities. [ID:nLL370481]

Wegelin & Co, which was founded in 1741 and says it is Switzerland's oldest bank, has suspended the opening of new U.S. client accounts.[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, said.

UBS's biggest domestic rival, Credit Suisse (CSGN.VX), expressed confidence in its business, but did not comment on the implications of the UBS agreement.

"We've had good net new asset inflows in recent years in wealth management in all regions internationally and in Switzerland," a Credit Suisse spokesman said.

"Credit Suisse strongly believes we have the right compliance structures in place and adhere to all applicable laws," he added.

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

Commentators have suggested the success of U.S. tax authorities in forcing UBS to disclose client data could prompt other jurisdictions like the European Union to follow suit with similar action against banks.

Baer was unconcerned at the suggestion of repercussions on its onshore and offshore business for EU clients.

"We have onshore activities in markets like Italy and Germany, and want to develop them. We can also offer private banking from Switzerland and provide clients with a tax certificate, as we already do for some German clients," the Baer spokesman said.

ZKB would stick to its strategy of targeting offshore clients in Germany and other German-speaking areas, as well as neighbouring eastern European countries, it said.

Ivan Pictet, senior managing partner at Pictet & Cie., one of Switzerland's largest private banks, said the risk of EU intervention was limited.

Switzerland already had an agreement with the European Union to impose withholding taxes on EU citizens' bank accounts in Switzerland, while preserving their right to financial privacy, he said. (Additional reporting by Albert Schmieder; Editing by Rupert Winchester and Simon Jessop and Mariam Karouny)