The US Department of Justice (DoJ) announced that a further three Swiss banks have reached a solution under the US Tax Program signed in August 2013. These banks are Privatbank Reichmuth & Co., Banque Cantonale du Jura SA, and Banca Intermobiliare di Investimenti e Gestioni (Suisse) SA.
According to the terms of the Non-Prosecution Agreements (NPA) signed, ‘each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared US accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses’.
In the Reichmuth’s NPA we learn that the bank’s position was that it could assist US account holders with undeclared assets as long as its account holders were prohibited from trading in US-based securities or the account was nominally structured in the name of a non-US based entity.
We also learn that since August, 2008, Reichmuth maintained and serviced 103 US-related accounts with an aggregate value of approximately $281 million, including both declared and undeclared accounts. Reichmuth will pay a penalty of $2.592m.
In the BCJ’s NPA, we learn that the institution opened and maintained undeclared accounts for a number of US taxpayers knowing that by doing so, BCJ likely helped these US taxpayers evade their tax obligations.
Since August, 2008, BCJ had a total of 118 US-related accounts. The aggregate amount of assets under management of all accounts was approximately $10m. BCJ will pay a penalty of $970k.
In January 2002, Banca Intermobiliare di Investimenti e Gestioni (Suisse) SA (BIM Suisse) entered into a QI Agreement with the Internal Revenue Service (IRS). BIM Suisse subverted the terms of that agreement by failing to fully comply with both its withholding and reporting obligations to the IRS, thus enabling US account holders to avoid reporting their accounts to the authorities.
In the BIM’s NPA we learn that vetween August, 2008, and May 2015, BIM Suisse closed 13 of its 16 US-related accounts. As of July 2015, BIM Suisse maintains only 3 US-related accounts, and none of those accounts remains undisclosed to the US tax authorities. BIM Suisse will not pay a penalty.