Switzerland and the United States have reached a preliminary agreement that will allow the closure of conflict related to Swiss banks facilitating tax evasion committed by American depositors, after years of diplomatic disputes.
Swiss Ministry of Finance will finalize a joint statement with the United States, announced on Wednesday the government in Bern. The agreement is the result of two years of negotiations relating to U.S. allegations that at least 12 Swiss banks, including Credit Suisse and Julius Baer Group, helped U.S. citizens to evade the IRS. Some of them are already involved in negotiations to close the investigation, but the U.S. Department of Justice wants to expand investigations and force other wealth managers in Switzerland to disclose information about data transfers.
“The program enables all banks in Switzerland to settle their U.S. past quickly and conclusively and creates the necessary legal certainty,” reads a press release of the Basel-based Swiss Bankers Association which represents over 300 banks.
Switzerland wants to prevent other banks from having the fate of Wegelin & Co., who was indicted last year. Wegelin, the oldest Swiss bank, has pleaded guilty in January for helping Americans hide money, and ceased its operations.
Wegelin took over over American clients from UBS, which in 2009 avoided being prosecuted after admitting that helped its clients to circumvent taxation in the U.S.
UBS, the largest Swiss bank, paid $780 million to close the investigation and handed over the names of its U.S. customers to the American authorities.
The United States are looking for lists of people suspected of tax evasion, who transferred from one bank account to another, according to the Swiss government. A spokesman for the Department of Justice could not be contacted.
Credit Suisse, Julius Baer and asset management division in Switzerland of HSBC Holdings all expect to pay a fine for closing disputes in the United States.
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