The US Department of Justice announced that Finacor SA, a Swiss asset management firm, reached a solution and signed a Non-Prosecution Agreement (NPA). The firm will pay a penalty.
The DoJ reports that under the terms of the agreement, Finacor is required to:
- Make a complete disclosure of its cross-border activities;
- Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
- Cooperate in treaty requests for account information;
- Provide detailed information regarding other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
- Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
- Pay a penalty of $295,000.
In 2013, Finacor submitted a Letter of Intent to participate in the US Tax Program under Category. It was then determined that Finacor was not eligible for the Swiss Bank Program due to its structure. The firm is licensed as a broker-dealer by the Swiss Financial Market Supervisory Authority (FINMA). Finacor manages assets held at various custodian banks.
In Finacor’s NPA we learn that since August, 2008, Finacor managed 11 US-related accounts with pa maximum aggregate assets under management of $14.6m. The 11 accounts consisted of 2 asset management and 9 fiduciary accounts. The firm will pay a penalty of $295k.