Swiss private bank Standard Chartered Bank (Switzerland) (SCB Switzerland) has reached resolution with the US Department of Justice (DoJ) over the tax evasion cases under the department’s Swiss bank programme.
The bank has agreed to pay a penalty of $6.33m to the US to avoid prosecution over allegations that it helped US citizens avoid paying taxes.
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Under the terms of the non-prosecution deal, the bank has agreed to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to prevent misconduct involving undeclared US accounts and pay penalties.
The US DoJ in a statement said that the bank held a total of 22 US related accounts with approximately $33.1m in assets under management.
SCB Switzerland has opened and maintained numbered accounts for certain US persons in the name of structures, including trusts created by American Express and inherited and maintained by affiliates of SCB Switzerland.
The department added that the bank has implemented the Advisory Center/Booking Center Model from American Express Bank and acquired a trust center from American Express Bank. It also maintained one account held by a British Virgin Islands private Investment Company.
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By GlobalDataAs part of the agreement, noncompliant US accountholders at SCB Switzerland will pay 50% penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Based in Geneva, SCB Switzerland is a wholly owned subsidiary of Standard Chartered, which in 2014 decided to close its Swiss private banking operations. SCB Switzerland is currently in voluntary formal liquidation.
