Last fall there was an outcry in the Swiss banking industry regarding the first draft of the Model Non-Prosecution Agreement (NPA) provided by the US Department of Justice (DoJ) because it was going beyond the scope of the agreed US Tax Program and brought the banks in conflict with the laws of Switzerland. This stimulated fear that a considerable number of banks would drop out of Category 2 and even leave the Program. As a consequence this could have endangered the negotiated agreement.
According to the NZZ, some of the points of conflict have been addressed. For example the duty for the participating banks to cooperate not only with the US authorities but also with authorities in other countries seems to have been removed. Another point in the first draft was the absence of an end point to this cooperation. This seems to now have been amended even though the endpoint is still controversial.