Under the non-prosecution agreements the banks are entering with the authorities, Rothschild will pay a penalty of $11.51 million, while Credinvest will pay $3.022 million. They will also provide detailed information for the accounts in question and will also make a complete disclosure of their cross-border activities.

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, a statement from the DoJ said. 

The two banks entered the department's Swiss Bank Program after advising that they had reason to believe they had committed tax-related criminal offences in connection with undeclared US affiliated accounts.

They join a host 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 days of safely hiding behind shell corporations and numbered bank accounts are over,” Caroline Ciraolo, acting assistant attorney general at the Department of Justice tax division, 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.”