Swiss banks BNP Paribas (Suisse) (BNPP), KBL Switzerland and Bank CIC have reached resolutions with the US Department of Justice (DoJ) over the tax evasion cases under the department’s Swiss bank programme.
Under the deal, the three Swiss banks have agreed to pay a combined $81m in penalties to the US.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
BNPP will pay $59.7m, KBL Switzerland will pay $18.7m and Bank CIC will pay a penalty of $3.28m to the US to avoid prosecution over allegations accusing them of helping Americans evade taxes.
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.
BNPP held a total of 760 US related accounts with approximately $1.2bn in assets under management since 1 August 2008.
During the same period, KBL Switzerland maintained 277 US related accounts with a total value of more than $225m, while Bank CIC had 261 US related accounts, which included about $228m in assets under management.
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 US DoJ in a statement said that BNPP opened and maintained accounts for US taxpayers in the name of non US corporations, foundations, trusts or other legal entities.
The bank also processed requests for cash withdrawals by US taxpayers from accounts being closed and maintained small number of US related accounts through its corporate and institutional banking (CIB) business line.
KBL Switzerland also opened and maintained accounts for US taxpayers in the names of corporations, foundations, trusts or other legal entities that were organized in non US jurisdictions, such as Panama, the British Virgin Islands or Liechtenstein.
It also implemented a flawed account closing policy that had the unintended effect of closing a number of US related accounts through substantial asset withdrawals and also offered Swiss travel cash cards issued by third parties.
According to the US DoJ, Bank CIC, a subsidiary Crédit Mutuel-CIC, offered a range of Swiss banking services, including hold mail and numbered accounts that could assist US clients in hiding assets and income from the IRS.
IRS-criminal investigation (CI) chief Richard Weber said: "The amount of money associated with each agreement is not insignificant, but even more significant is the amount of ?data that we will receive as a result of the Swiss Bank Program."
