Bank Valiant AG reached an agreement with the US authorities and will pay a settlement amount of $3.304m. Together with another 100+ banks, Valiant signed up under ‘Category 2’ in the US Tax Program back in December 2014.
In the Bank Valiant AG’s NPA we learn that the institution offered various services, numbered accounts, and sham entities to US clients. Valiant also accepted money from 19 UBS accounts.
The US Department of Justice (DoJ) reports that ‘for 26 accountholders who refused to sign a Form W-9, Valiant cashed out or converted into gold hundreds of thousands (and even millions) of dollars in account balances’.
Valiant mitigated its penalty by encouraging US accountholders to become US tax compliant. While US accountholders at Valiant and other bans who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, but at a higher price.
Since August 1, 2008, Valiant accomodated 330 US-related accounts with a maximum aggregate value of $147.4m. Valiant will pay a penalty of $3.304 million.