[July 26, 2014]
ZURICH (Reuters) - About 80 of
the 106 Swiss banks that signed up for a deal with U.S. tax
authorities could be fined less than they had feared for their role
in helping wealthy Americans cheat on their taxes, but must widen
their cooperation, a Swiss newspaper reported.
The banks, which include Geneva-based Lombard Odier and Zurich firm
EFG International <EFGN.S>, came forward under a program brokered by
the Swiss and U.S. governments, after criminal investigations of
roughly a dozen Swiss banks including Credit Suisse <CSGN.VX> in the
United States.
So-called second category banks will escape prosecution if they
detail their wrong-doing with U.S. clients and pay fines under the
program agreed last year.
But they must cooperate more fully with U.S. prosecutors before
reaching non-prosecution agreements, Finanz und Wirtschaft reported
on Saturday, citing unnamed legal sources.
Since a Dec. 31 deadline to enter the program, the banks have
delivered information on how many American clients they have served
in recent months, and clarified with U.S. officials what the
penalties for harboring funds in offshore accounts will be.
In May, Zurich-based Credit Suisse became the largest bank in
decades to plead guilty to a U.S. criminal charge and agreed to pay
more than $2.5 billion in penalties for similar offences.
The U.S. Department of Justice, which last month extended the
deadline for category 2 banks by one month, hasn't discussed
specific financial penalties for those firms, according to Finanz
und Wirtschaft.
Each bank's situation will be determined by September, the paper
reported.
The banks are not required to hand over client names as part of the
deal, but must commit to handing over information which will help
U.S. officials set up judicial aid requests to pursue tax dodgers.
A spokesperson for the Swiss government wasn't immediately available
for comment on Saturday.
(Reporting by Katharina Bart; Editing by Ruth Pitchford)
