The Swiss unit of Deutsche Bank has agreed to participate in a US tax program and is working with the US officials over a crackdown on wealthy Americans evading taxes through hidden offshore accounts.
By joining the program, Deutsche Bank’s Swiss unit -which has a total of 13,000 clients – will not be prosecuted by disclosing previously undeclared US accounts, The Wall Street Journal reported.
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However, the bank is still expected to face penalties equivalent to as much as half of the amount of hidden funds held for US clients.
"I can confirm that we are taking part in the US programme," the bank spokeswoman told Reuters.
In December last year, more than 100 Swiss banks and other institutions have agreed to work with US officials by providing information about wealthy Americans suspected of off-shore tax evasion.
The programme will require the banks to provide some previously hidden information and pay a financial penalty based on whether they were compliant with US tax rules or not.
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By GlobalDataThe Wall Street Journal reported that the first non-prosecution agreements for banks taking part in the program will be announced by the end of this year.
In 2013, the Federal Reserve Bank of New York found that the US operations of Deutsche Bank suffered from serious financial-reporting deficiencies.
The Swiss units of Goldman Sachs Group and Morgan Stanley have also agreed to participate in the program and face potential penalties.
