Swiss private bank Rahn & Bodmer has disclosed that it is under investigation by US authorities for allegedly aiding American citizens evade taxes.
The move follows a recent deal to allow some Swiss banks to pay fines instead of facing prosecution for tax evasion by their US customers.
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The deal applies to about 100 second-tier Swiss banks, which may have to disclose information and face penalties of up to 50% of assets they manage for wealthy Americans.
Rahn & Bodmer Co partner Christian Rahn said the bank has stopped dealing with untaxed U.S. funds in 2008, and has advised US clients to take part in voluntary offshore-disclosure programs offered by U.S. authorities.
The agreement did not, however, cover a first group of banks already under US criminal investigation including Credit Suisse, Julius Baer and Zuercher Kantonalbank.
The bank will not need to set aside capital to meet regulatory requirements if it has to pay a fine, as it has provisions which will cover a potential payment to the US, Rahn said.
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By GlobalDataThe Zurich-based bank has managed client assets of 12.5 billion Swiss francs (US$13.4 billion) at the end of 2012. It employs about 200 people.
"We knew we would have to go to U.S. authorities, so we began to prepare the documentation concerning our U.S. business some months ago, believing we would be in the second group," said Rahn.
"The bank was informed last week that it was under investigation," he added.
