Following rumours heard by this publication that it was considering the move, Barclays has announced today that two of its entities have pulled out of the US-Swiss programme concerning undeclared US account holders.

Following rumours heard by this publication that it was considering the move, Barclays has announced today that two of its entities have pulled out of the US-Swiss programme concerning undeclared US account holders.

WealthBriefing understands that the bank believes it has no undeclared client money in the Alpine state. Barclays announced interim results today (see here).

"Barclays Bank (Suisse) SA and Barclays Bank PLC Geneva Branch were participating in the Programme; however, following a structured review of their US related accounts, it was determined that continued participation in the Programme was not warranted. As a result, Barclays Bank (Suisse) SA and Barclays Bank PLC Geneva Branch have withdrawn from the Programme,” the bank said in its statement today.

The Swiss and US governments agreed in August last year on a programme through which banks with Swiss operations could state whether they were sure, or were unsure, of holding such undeclared money. It is estimated that a third or more of Switzerland’s roster of over 300 banks have entered the programme, administered by the US Department of Justice. It is designed to resolve a long-running dispute about tax evasion between the countries.

Switzerland’s two largest banks (UBS and Credit Suisse) and its oldest private bank (Wegelin & Co) are among the firms that the US has punished with heavy fines (and in Wegelin’s case, closed down in the US) for aiding US tax evaders.

Last August, the Swiss government said the US programme is open to all Swiss banks, excluding those banks which are the target of criminal investigations by the Department of Justice (also known as category 1). Banks in category 2 - which have good reasons to believe that they have violated US tax law - may request a non-prosecution agreement from the US authorities up to 31 December, 2013 at the latest. They must then supply the US authorities with information on their cross-border relations, particularly leaver lists, but not the names of clients, the government said.

Institutions in category 2 must also pay a fine, the amount of which will be in relation to the volume of untaxed US assets they hold and the date on which the accounts were opened. The fines amount to 20 per cent for accounts which existed on August 1 2008, and 30 per cent for accounts opened between 1 August, 2008 and 28 February, 2009. If a bank opened an account with untaxed US assets after 28 February, 2009, the fine will be 50 per cent. The statement added that banks which believe that they have not violated US tax law (category 3) and those whose business is local in nature (category 4) can report to the US authorities between 1 July, 2014 and 31 October, 2014 at the latest to request a non-target letter.