Tax
More Swiss Banks Disclose Accounts Under US Program
Another two Swiss banks have entered into non-prosecution agreements with the US Department of Justice.
Switzerland-based Rothschild Bank and Banca Credinvest have agreed to disclose secret accounts belonging to US taxpayers as part of the US Department of Justice's clampdown on offshore tax evasion.
The two banks had entered the department's Swiss Bank Program after advising that they had reason to believe they had committed tax-related criminal offenses in connection with undeclared US affiliated accounts.
They join a list of Swiss banks that have recently reached such agreements to avoid prosecution for tax evasion. Last month, Finter Bank Zurich agreed to pay $5.4 million to the US Department of Justice. The Swiss Bank Program was unveiled in August 2013 as a way for Swiss banks to resolve potential criminal tax liabilities in the US. This year, BSI and Vadian Bank have also settled with US authorities under the US-Swiss pact over tax offences.
“The days of safely hiding behind shell corporations and numbered bank accounts are over,” Department of Justice Tax Division Acting Assistant Attorney General Caroline Ciraolo said in a statement.
“As each additional bank signs up under the Swiss Bank Program, more and more information is flowing to the Internal Revenue Service agents and Justice Department prosecutors going after illegally concealed offshore accounts and the financial professionals who help US taxpayers hide assets abroad," Ciraolo said.
Since August 2008, Zurich-headquartered Rothschild had 332 US-related accounts holding an approximate total of $1.5 billion, while Lugano-headquartered Credinvest had 31 US-related accounts with just over $24 million. Both banks knowingly offered services to help US taxpayers conceal their assets and income from the IRS.
Under the non-prosecution agreements, Rothschild will pay a penalty of $11.51 million, while Credinvest will pay $3.022 million. They will provide detailed information for the accounts in question and will also make a complete disclosure of their cross-border activities.
