The Banque Cantonale de Genève (BCGE) announced its full year 2014 results today with a record net profit of CHF 76.2. At the Annual General Meeting, the Board of Directors will propose a dividend payment of 5% of the par value of shares, representing an increase of 11%.
At the same time it announces its withdrawal from the US Tax Program. The bank says that ‘following an extensive audit work of its American clientele, conducted with the assistance of qualified external experts, and after a thorough examination of the circumstances with its external legal counsels, the BCGE has determined that continued participation to the Program was not warranted and has decided to withdraw from the said Program’. It was previously announced in Category 2 of the Program, i.e. banks that were not under investigation by the US Department of Justice (DoJ) at the time of signature of the US Program but have reason to believe that they have committed tax-related offenses. The Category 2 banks need to deliver information about the cross-border business on US-related accounts and pay a fine that is based on a lump sum calculation for undeclared accounts. This would allow them to obtain a Non-Prosecution Agreement (NPA).