Swiss-based Privatbank IHAG Zurich has reached resolution with the US Department of Justice (DoJ) over the tax evasion cases under the department’s Swiss bank programme.

The private bank has agreed to pay a penalty of $7.4m to avoid prosecution over allegations that it helped wealthy Americans evade taxes.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Under the terms of the non-prosecution deal, IHAG 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 DoJ said that IHAG maintained a total of 182 US related accounts with an aggregate value of $791m since 1 August 2008.

IHAG helped certain recalcitrant US persons in concealing undisclosed accounts by moving the funds to another jurisdiction and returning the funds to IHAG in a different name to allow recalcitrant accountholders to continue to maintain undeclared accounts at IHAG.

The bank also assisted clients in establishing foundations used to hold their assets at IHAG.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The department added that IHAG offered a variety of traditional Swiss banking services inclusing hold mail, as well as accounts opened in the name of pseudonyms that assisted US taxpayers in concealing assets and income from the IRS.

Justice Department tax division acting assistant attorney general Caroline Ciraolo said: "Through the information provided by IHAG and other Swiss banks in the Program, the department has unraveled the various schemes and identified the foreign jurisdictions used by U.S. taxpayers to conceal their foreign accounts."