The US Department of Justice (DoJ) announced that they reached an agreement with a further 3 Category 2 Swiss banks. Mercantil Bank (Schweiz) AG, Banque Cantonale Neuchâteloise (BCN) and Nidwaldner Kantonalbank (NKB) agreed to cooperate in any related criminal or civil proceedings. They will sign an Non-Prosecution Agreement (NPA), and pay a fine.
In the Mercantil NPA we learn that since August 2008, the bank held a total of 116 US-related accounts with a maximum aggregate value of $59.8m. Mercantil will pay a penalty of $1.172m.
As part of its participation in the US Tax Program, BCN provided certain account information related to US taxpayers. In the NPA we learn that since August 2008, BCN held 190 US clients with a total of 595 US-related accounts with a maximum dollar value of approximately $67.5m. BCN will pay a penalty of $1.123m.
In the case of NKB, despite understanding that US taxpayers had a legal duty to report to the IRS and to pay taxes on income earned in accounts maintained in Switzerland, NKB opened and maintained undeclared accounts for US taxpayers. During the Applicable Period, NKB held a total of 95 US-related accounts with a peak value of assets under management of c.a. $30.5m. NKB will pay a penalty of $856,000.