Bank EKI Genossenschaft reaches an agreement with the US Department of Justice (DoJ) under the US Tax Program. The bank was signed up in the program under Category 2.
In the statement from the DoJ we learn that ‘Bank EKI opened, serviced and profited from accounts for US clients with the knowledge that many were likely not complying with their tax obligations. Many of the US-related accounts were transferred from other Swiss financial institutions that were closing such accounts’. Moreover ‘Bank EKI did not sufficiently implement an effective system of supervisory policies, procedures or controls over its relationship managers to increase its U.S.-related clients’ tax compliance’ says the DoJ.
In the Bank EKI’s NPA we also learn that since August 1, 2008, Bank EKI held a total of 64 US-related accounts amounting to c.a. $21m in aggregate assets. Bank EKI will pay a penalty of $400,000.