EFG International AG, the Latsis family-owned bank, announced that it provisioned $24m to pay for the US tax fine. It entered the US Program under Category 2 in December 2013. The fine for the Category 2 banks is based on a lump sum calculation for undeclared US Related Accounts with different fixed fine rates of the maximum aggregate dollar value of such accounts; the fine ranges from 20 to 50% of the undeclared US assets held.
Bloomberg reports that an e-mail was circulated saying “that amount represents EFG’s best estimate of the final cost of the penalty”.
EFG made this statement while reporting its half-year 2014 results. It made a net loss of over 6.6m as a result of non-recurring legal charges and provisions mostly linked to the US Program, excluding this the bank made a profit of $64m.