Swiss bank Banque Pictet admits hiding $5.6 billion in US funds from the IRS –

  • A major Swiss bank admits it worked with U.S. taxpayers and others to hide more than $5.6 billion from the Internal Revenue Service.
  • Banque Pictet, the private banking arm of the Pictet Group, has agreed to pay around $122.9 million in restitution and penalties in an agreement with prosecutors.
  • If the bank complies with the terms of the agreement, the Justice Department will delay prosecution for three years and then dismiss the charge of criminal conspiracy to defraud the IRS.

A sign stands in front of Banque Pictet & Cie SA in Geneva, Switzerland, on Friday, October 16, 2015.

Luke MacGregor | Bloomberg | Getty Images

A major Swiss bank admitted colluding with U.S. taxpayers and others to hide more than $5.6 billion from the Internal Revenue Service, the Justice Department announced Monday.

Banque Pictet, the private banking arm of the 218-year-old Pictet Group, will pay about $122.9 million in restitution and penalties as part of an agreement with prosecutors.

Between 2008 and 2014, the bank had 1,637 accounts in the names of American customers who evaded a total of about $50.6 million in U.S. taxes, the DOJ said.

The accounts themselves held more than $5.6 billion of the approximately $20 billion in total U.S. taxpayer assets the bank managed during the relevant period.

If the bank complies with the terms of its agreement, the Justice Department has agreed to defer prosecution for three years and then dismiss charges of criminal conspiracy to defraud the IRS.

As part of the agreement, the bank also agreed to cooperate with ongoing investigations into hidden bank accounts.

“Investigating financial wrongdoing remains a priority for this office,” Damian Williams, U.S. Attorney for the Southern District of New York, said in a statement.

“We encourage companies and financial institutions to come to us to report misconduct before we come to you,” he added.

This is breaking news. Please check back for updates.


Posted

in

by