Swiss firm Finacor SA has reached resolution with the US Department of Justice (DoJ) over the tax evasion cases under the department’s Swiss bank programme.
The Swiss asset management firm has agreed to pay a penalty of $295,000 to the US to avoid prosecution over allegations that it may have helped US citizens avoid paying taxes.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Under the non-prosecution agreement, the company agreed to cooperate in any related criminal or civil proceedings and demonstrate implementation of controls to prevent misconduct.
As per the terms of the deal, Finacor will provide a complete disclosure of its cross-border activities, provide complete information of accounts in which US taxpayers have interest, cooperate in treaty requests for account information, provide information about banks that transferred funds into secret accounts as well as close accounts which fail to comply with US reporting obligations.
The DoJ said that the Swiss firm managed 11 US accounts including two asset management and nine fiduciary accounts with aggregate assets under management of $14.6m since 1 August 2008.
The firm conducted a US cross-border asset management business that assisted US clients in hiding assets and income they held in their undeclared accounts in Switzerland.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe department added that Finacor also helped US clients conceal assets by providing fiduciary account services, holding account-related mail at Finacor for clients, sending checks below $10,000 to the US and by using code words for money transfers.
Justice Department tax division acting assistant attorney general Caroline Ciraolo said: "Through the Swiss Bank Program, we have received information not just about culpable banks, but also asset management and investment advisory firms that played a role in the concealment of U.S.-related accounts and the evasion of U.S. taxes."
IRS-criminal investigation chief Richard Weber said: "Agreements like that with Finacor SA redefine international tax compliance initiatives and have far-reaching, global implications.
"The American public can expect that we will use all of the information we are gathering to vigorously pursue individual U.S. taxpayers who illegally conceal assets offshore and to develop innovative strategies to combat international tax evasion worldwide."
