NPB Neue Privat Bank, a Zurich-based private bank, has agreed to pay a $5m penalty to resolve US Department of Justice’s (DoJ) allegations of helping US clients evade taxes.

DoJ alleged that until 2012, the private bank operated a cross-border banking business that helped its US clients dodge taxes by enabling them to maintain undeclared accounts in Switzerland.

The regulator also accused the bank of providing various banking services, such as numbered accounts and hold mail, which could help clients hide assets and income from the US authorities.

According to DoJ, NPB managed assets of around $400m in 353 US-related accounts, including declared as well as undeclared ones, between 1 August 2008 and 31 December 2015.

The bank has now signed a non-prosecution agreement with the DoJ, agreeing to cooperate in criminal or civil proceedings.

DoJ tax division principal deputy assistant attorney general Richard Zuckerman said: “The Department of Justice is committed to ending the practice of using foreign bank accounts to evade taxes. Taxpayers and financial institutions should take notice that the Department is continuing to aggressively pursue these cases.”

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