Swiss banks Bank Lombard Odier & Co Ltd (Lombard Odier) and DZ Privatbank (Schweiz) (DZ Privatbank) have reached resolutions with the US Department of Justice (DoJ) over the tax evasion cases under the department’s Swiss bank programme.
The banks have collectively agreed to pay a penalty of more than $107m to the US to avoid prosecution over allegations accusing them of helping Americans evade taxes.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The penalty will include $99.8m from Lombard Odier and $7.45m from DZ Privatbank.
As per the terms of the non-prosecution agreements, the banks have agreed to cooperate in any related criminal or civil proceedings and demonstrate implementation of controls to prevent misconduct.
The DoJ said that Lombard Odier maintained 1121 US related accounts with over $4.45bn in assets, including assets of declared accounts since 1 August 2008.
Lombard Odier offered a variety of traditional Swiss banking services including hold mail service, numbered accounts and also held accounts in the names of non-US corporations, foundations, trusts or other entities that assisted US taxpayers in hiding assets from the IRS.
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 bank maintained at least 32 entity accounts and also referred clients to its Swiss-based affiliate, Favona, which provided administrative services, including accounting services and supplying corporate directors.
Also, a Zurich-based law firm and a Zurich-based lawyer referred US related accounts to Lombard Odier with assets under management of over $63m.
Since 1 August 2008, DZ Privatbank held a total of 691US related accounts with a maximum aggregate value of roughly $498m.
According to the US DoJ, DZ Privatbank has conducted a US cross-border banking business to help US clients in maintaining undeclared accounts in Switzerland and also offered services such as numbered accounts, the ability for customers to have their mail held at DZ Privatbank and the use of a post office box held in the name of a DZ Privatbank employee.
In May 2009, DZ Privatbank had accepted customers from Credit Suisse who had either terminated their relationship with Credit Suisse or whom Credit Suisse had terminated. The bank’s employees met with Credit Suisse personnel related to the transfer of accounts to DZ Privatbank.
Additionally, Credit Suisse personnel provided advice to DZ Privatbank personnel related to clients’ potential participation in the IRS’s offshore voluntary disclosure programs (OVDP) to DZ Privatbank personnel.
