Swiss Banks Entering U.S. Client Disclosure Program

The U.S. voluntary disclosure program for Swiss banks to avoid prosecution for fostering tax evasion through cross-border accounts held by U.S. clients divides banks into four categories.

About one third of Swiss banks have applied for category 2 of the program, U.S. Assistant Attorney General Kathryn Keneally said on Jan. 27, after the Department of Justice received 106 letters of intent by Dec. 31. Keneally didn’t name any banks seeking to take part.

The following table shows the banks that have declared their intentions by category, in reverse chronological order. The table shows where banks have announced a provision for a potential penalty and/or costs related to the program, and where it’s known that they have transfered data related to U.S. accounts to the U.S. authorities.

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ank Cat.* Date Provisions Data
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CATEGORY 2

Deutsche Bank AG 2 10/14 ? ?
Lloyds Banking Group Plc 2 07/14 ? ?
Schroder & Co. Bank AG 2 03/14 £15m Yes
Coutts & Co. AG 2 02/14 ? Yes
Gonet & Cie. 2 01/14 ? Yes
La Roche & Co. AG 2 01/14 ? ?
Bordier & Cie. 2 01/14 ? ?
BSI Group 2 01/14 Yes Yes
Cie. Lombard, Odier SCA 2 12/13 ? Yes
Rothschild Bank AG 2 12/13 ? Yes
Union Bancaire Privee 2 12/13 ? ?
EFG International AG 2 12/13 CHF36.5m Yes
Banca dello Stato 2 12/13 ? ?
Banque E. de Rothschild 2 12/13 ? ?
Banque Cantonale Neuchatel. 2 12/13 ? ?
Banque Cantonale du Valais 2 1213 ? ?
Schaffhauser Kantonalbank 2 12/13 ? ?
Hypothekarbank Lenzburg 2 12/13 Yes ?
Banque Cantonale du Jura 2 12/13 ? ?
Nidwaldner Kantonalbank 2 12/13 No ?
Aargauische Kantonalbank 2 12/13 not announced
Luzerner Kantonalbank AG 2 12/13 CHF5m Yes
St. Galler Kantonalbank AG 2 12/13 Yes** ?
Hyposwiss Private Bank 2 12/13 see St.Galler
Graubuendner Kantonalbank 2 12/13 Yes ?
Banque Cantonale Vaudoise 2 12/13 Yes** ?
Piguet Galland & Cie SA 2 12/13 see BC Vaud.
Banque Cantonale de Geneve 2 12/13 Yes** Yes
Zuger Kantonalbank AG 2 12/13 CHF8m Yes
PostFinance 2 12/13 No Yes
Bank Linth LLB AG 2 12/13 CHF2.6m Yes
Migros Bank AG 2 12/13 Yes Yes
Bank Coop AG 2 12/13 CHF9m ?
Berner Kantonalbank AG 2 12/13 ? Yes
Valiant Holding AG 2 12/13 Yes Yes

Please see next page


CATEGORY 3 or 4

Baloise Bank SoBa 3 12/13 N/A
Cembra Money Bank AG 3 12/13 N/A
Acrevis Bank AG 4 12/13 N/A
Urner Kantonalbank 4 12/13 N/A
AEK Bank 1826 4 12/13 N/A
Obwaldner Kantonalbank 4 12/13 N/A
Glarner Kantonalbank 4 12/13 N/A
Thurgauer Kantonalbank 3 or 4 12/13 N/A
Appenzeller Kantonalbank 4 12/13 N/A
Schwyzer Kantonalbank 4 12/13 N/A
Basellandschaftliche Kbnk 4 12/13 N/A
DC Bank 4 12/13 N/A
Raiffeisen Schweiz 3 or 4 12/13 N/A
Regiobank Solothurn AG 4 12/13 N/A
Vontobel Holding AG 3 12/13 N/A

NOT PARTICIPATING

VP Bank N/A 08/14 N/A
Barclays Bank (Suisse) SA N/A 07/14 N/A
B. Cant. de Fribourg N/A 07/14 N/A
Banque Benedict Hentsch N/A 01/14 N/A
Axion SWISS Bank SA N/A 12/13 N/A
Globalance Bank AG N/A 12/13 N/A
Alternative Bank Schweiz AG N/A 12/13 N/A

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OTES: Source: bank disclosures

* Categories: (1) Banks under investigation. Credit Suisse Group
AG paid $2.6 billion and pleaded guilty in a U.S. court in May.
The following also subject of criminal probes: Bank Frey & Co.
AG, Bank Hapoalim BM, Bank Leumi Le-Israel BM, Basler
Kantonalbank, HSBC Holdings Plc’s Swiss unit, Julius Baer Group
Ltd., Liechtensteinische Landesbank AG’s Swiss unit, Mizrahi-
Tefahot Bank Ltd., NPB Neue Privat Bank AG, Pictet & Cie. Group
SCA, Rahn & Bodmer Co., Zuercher Kantonalbank; (2) Banks with
U.S. client accounts not already under investigation; they can
apply to negotiate non-prosecution agreements and pay fines; (3)
Banks that don’t have undeclared U.S. client accounts; they
won’t pay fines and aim is to get non-target letters from the
U.S.; (4) Banks with local clients (98% Swiss or EU)
**St. Galler Kantonalbank made provisions in 2013 of CHF42m;
that includes a provision for subsidiary Hyposwiss
**Banque Cantonale Vaudoise didn’t define portion of 2013
provision of CHF43m that’s for U.S. tax matters; figure includes
provision for subsidiary Piguet Galland
**Banque Cantonale de Geneve didn’t define portion of 2013
provision of CHF25m that’s for U.S. tax matters