Barclays’ Swiss unit has decided to withdraw from the US Justice Department’s tax disclosure program which requires a structured review of US accounts.
A Barclays spokeswoman said that Barclays Bank (Suisse) SA and Barclays Bank Geneva Branch have withdrawn from the programme.
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Following a structured review of US accounts, it was determined that Swiss operation of Barclays continued participation in the program was not warranted.
The programme requires the banks to provide some previously hidden information and pay a financial penalty.
Under the programme, banks have until the end of this month to deliver data related to US accounts but may be fined as much as 50% of the value of the undeclared US accounts they have harbored.
In January this year, the United States Justice Department received request from additional 106 Swiss banks to participate in the tax probe brokered by the Swiss and US governments.
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By GlobalDataMichael Ambuhl, the former official who led negotiations for the Swiss government on the program, said that the banks that have possibly aided tax evasion may now want to tread lightly as they seek to step away from the program.
"I hope that those who intend to drop out now have good reasons," he added.
