While announcing the bank’s result, Pascal Kiener, Banque Cantonale Vaudoise (BCV) CEO, described as ‘insane’ the work required to meet the requirements of the US Tax Program. 30 people had to be hired full time to work on that project, plus Swiss and American lawyers and audit firms. This obviously has a cost.
The CEO added that for now BCV has provided no employee information to the DoJ since it has not received a formal request. Out of the 200 employees affected by the procedure only 1% is considering a litigation case. ‘We are calm and confident as the bank has never had a policy of soliciting US clients on US soil’ says Pascal Kiener.
As a reminder the BCV announced its participation to the US Tax Program under the so-called Category 2, i.e. the banks that were not under investigation by the 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).