Around 80 of the 106 Swiss banks that have inked a deal with the US government on tax evasion could reportedly face smaller fines than they had feared, but only if they cooperate more with the United States.
Citing a report by Swiss publication Finanz und Wirtschaft r, Reuters reported that that the banks could pay 20 to 50% lower fines than initially expected if they widen their cooperation with the US.
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Since 31 December, Swiss banks have sent US authorities information about how many American clients they have served in recent months and clarified how much the penalties will be for hiding funds in offshore accounts.
Last year, the US and Swiss governments have reached an agreement on a comprehensive plan allowing Swiss banks to settle with US authorities over accounts held by US tax evaders.
Under the US tax evasion deal, banks in the second category will escape prosecution if they cooperate fully with US clients and pay fines under the programme agreed last year.
As part of the deal, the banks need not hand over client names, but they have to provide information to US authorities = in setting up judicial requests to go after tax dodgers.
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By GlobalDataLast month, the US Department of Justice extended the deadline for category 2 banks by one month but has not disclosed specific financial penalties for those firms, reported Finanz und Wirtschaft.
The publication said that each bank’s individual situation and fine will be determined by September.
