Around a dozen banks in the so-called Category 1, i.e. the banks that were already under investigation by the US Department of Justice (DoJ) at the time of the publication of the US Program on August 29, 2013. They are excluded from the Program and will have to provide individual delivery of US requested information. They need to find a solution based on direct negotiations with the DoJ and the fines are defined on an individual basis.
Credit Suisse was the biggest bank in this category and settled the tax dispute with USA with a $2.6m settlement and a guilty plea earlier this year. Credit Suisse was believed to have helped 22,000 US-related clients to avoid taxes adding to about $10bn in assets.
All other banks are hoping for an agreement with the DoJ to come soon.
The market is expecting Julius Baer to have to pay between c.a. $885m and $1.04bn.
“We are in Category 1 and convinced that the bilateral discussions allow Pictet to explain all the arguments and thus to find a solution for the past” says Jacques de Saussure, Managing Senior Partner at Pictet, to Finanz und Wirtschaft.
Bank Leumi is supposed to be close to a $400m settlement according to Bloomberg.
Zürcher Kantonalbank (ZKB) is believed to have never managed more than $2bn assets of US offshore clients between 2000 and 2009 while it was around $625m for the Basler Kantonalbank.