In a draft agreement related to tax evasion, the US Department of Justice (DOJ) is seeking "total cooperation" from Swiss banks to stop banks from aiding wealthy Americans evade taxes.
Under the non-prosecution agreement, the Swiss banks will have to report full information or knowledge of activity relating to US tax to the regulatory authorities in the US, reported a Swiss newspaper Neue Zuercher Zeitung (NZZ).
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
These rules will also apply to parent companies, subsidiaries, management, workers and external advisors, the NZZ said citing unnamed sources.
"This total cooperation would, in addition, not only apply with respect to the DOJ and the Internal Revenue Service, but also to anyone, even foreign law enforcement agencies that the DOJ is supporting in its investigations," the NZZ reported.
However, the draft agreement does not include the end date for this cooperation.
The newspaper said that it is not clear whether the banks must handover the information to the US if it complies with Swiss law.
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 GlobalDataFailure by banks to comply with the terms of the agreement would make them void, and they might risk prosecution from the DOJ.
In December last year, more than 100 Swiss banks and other institutions have agreed to work with US officials by providing information about wealthy Americans suspected of off-shore tax evasion.
As part of the program with the authorities, so called category 2 banks will escape prosecution if they cooperate fully with US clients and pay fines.
