Schroder & Co. Bank AG Reaches Resolution under Justice Department's Swiss Bank Program and Agrees to Pay $10.3 Million Penalty

Schroders Plc’s Swiss bank will pay a $10.4 million penalty to avoid prosecution under a U.S. program that requires participating firms in Switzerland to say how they helped American clients avoid taxes.

Schroder & Co. Bank AG’s penalty is the fourth highest among 33 banks that have settled with the Justice Department this year after disclosing they had reason to believe they may have committed tax-related crimes related to U.S. accounts. The banks have paid a combined $308.9 million to receive non- prosecution agreements.

The bank had 243 U.S.-related accounts totaling $506 million in 2008, according to the Justice Department.

London-based Schroders is the U.K.’s largest publicly traded asset manager in Europe by market value and has about 309.9 billion pounds ($472.1 billion) in funds under management. The firm set aside 15 million pounds in March 2014 for a possible penalty.

“We have invested and will continue to invest considerable resources in systems to support the increasing demands of enhanced international tax reporting,” according to a bank spokeswoman.