Four banks settle in US tax evasion scheme

Some 100 Swiss banks signed up to the DoJ non-prosecution scheme Pixsil

Another clutch of Swiss-based banks have settled with the United States tax evasion non-prosecution programme. The four banks collectively paid more than $2.2 million (CHF2.1 million) with the Lugano-based Société Générale coughing up the largest amount - $1.36 million.

The banks turned themselves in by joining the US programme in 2013, along with around 100 other Swiss-based institutions. The scheme allows banks to pay fines in return for the Department of Justice (DoJ) waiving criminal prosecutions.

MediBank, based in Zug, was hit with a $826,000 fine after taking clients from UBS when that bank was being prosecuted by the US. The DoJ said that MediBank had hired a UBS client relationship manager in a bid to poach clients and their assets from Switzerland’s largest bank.

By contrast, LBBW Switzerland ($34,000) and Scobag private bank ($1,090) got off relatively lightly – largely by dint of holding less secret money from US tax cheats.

Two weeks ago, Finter Bank was forced to hand over $5.4 million in fines as it settled with the DoJ in the same programme.

The latest announcement of deals comes two days after Jacques de Watteville, head of the State Secretariat for International Financial Matters (SIF) told journalists that more resolutions would be coming soon. “The faster it happens, the better it is for everyone,” he said.

In a separate case, the Basel Cantonal Bank settled tax irregularity issues with Germany, also on Thursday May 28. The bank agreed to hand over €38.6 million (CHF40 million) to the German authorities to clear up past indiscretions.

International pressure since UBS was prosecuted in the US in 2009 has forced Switzerland to give up its tough banking secrecy laws. The alpine state has committed to adopting the automatic exchange of tax information by the start of 2018.