The US Department of Justice (DoJ) announced today that Deutsche Bank (Suisse) SA (Deutsche Bank) reached a solution under the US Tax Program. The bank will pay a penalty of over $31m.
According to the DoJ, at least from August 2008 through August 2013, Deutsche Bank enabled a number of US taxpayers to evade their US tax and filing obligations and allowing them to hide offshore assets from the Internal Revenue Service (IRS). Moreover, Deutsche Bank offered a variety of services and permitted some practices that it knew could and did assist U.S.
Deutsche Bank has cooperated fully with the DoJ during its participation in the US Tax Program. According to the DoJ, Deutsche Bank conducted an ‘internal investigation that included interviews of relationship managers and members of management; review of account files; review of emails; and review of applicable policies, procedures and compliance training materials. Deutsche Bank provided a comprehensive and detailed in-person presentation to the department, with accompanying documentation, regarding the findings of its internal investigation and how it structured, operated and supervised its cross-border business. Deutsche Bank assisted and agreed to continue to assist US authorities in preparing treaty requests to the Swiss competent authority for account records of US clients, including by identifying accounts that may meet the standard for information exchange under an applicable treaty. On a rolling basis and prior to the execution of its non-prosecution agreement, Deutsche Bank also provided aggregate and account-level information regarding US-related accounts that were closed since August, 2008’.
In the Deutsche Bank’s NPA it is stated that since August, 2008, the institution had 1,072 US-related accounts with an aggregate maximum value of approximately $7.65bn. Deutsche Bank will pay a penalty of $31.026m.