The latest settlement brings the number of non-prosecution agreements signed under the Swiss Bank Program to 77.

Switzerland's Leodan Privatbank has reached a deal with the US Department of Justice to avoid prosecution over undeclared accounts. The bank will pay a penalty of $500,000.

Since August 2008, Leodan held a total of 44 US-related accounts, including both declared and undeclared accounts, worth a total $59.42 million in assets under management.

The Zurich-based private bank conducted a US cross-border banking business that helped some US clients open and maintain undeclared accounts in Switzerland, and conceal the assets and income they held in these accounts from the US government, the DoJ revealed in a statement.

Leodan opened 19 US-related accounts for 13 clients of an external asset manager. Of these accounts, 16 were structured accounts held by non-US domiciled entities. More than 40 per cent of the US-related accounts brought to Leodan came from the bank's relationship with this asset manager, who was later indicted for conspiring with US taxpayers to help them evade tax. Between May 2011 and October 2012, Leodan made no effort to find out the status of the criminal investigation against this person, according to the DoJ.

Under the non-prosecution agreement, Leodan agrees to cooperate in any related criminal or civil proceedings, and demonstrate its implementation of controls to stop any future such misconduct. Earlier this month, Union Bancaire Privée signed a similar NPA and agreed to pay a penalty of $187.767 million.

The department added that while US accountholders at Leodan who have not yet declared their accounts to the IRS may still be eligible for the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.

At a meeting earlier this month, Leodan’s shareholders voted to wind-down Leodan’s banking operations.