US and Switzerland reached a final bank settlement deal which will help the Swiss banks to avoid prosecution. However, according to the Local the banks are going to pay hefty fines under the new agreement.
US Attorney General Eric Holder said in a statement about the US and Switzerland bank settlement deal. “This program will significantly enhance the Justice Department's ongoing efforts to aggressively pursue those who attempt to evade the law by hiding their assets outside of the United States…In addition to strengthening our partnership with the Swiss government, the program's requirement that Swiss banks provide detailed account information will improve our ability to bring tax dollars back to the US Treasury from across the globe.”
On Wednesday, the Swiss Bankers Association hailed the deal after it was accepted by the Swiss government. According to the Association it “enables all banks in Switzerland to settle their US past quickly and conclusively and creates the necessary legal certainty.” In addition, the Swiss government said in a statement that the deal provided a framework for cooperation while respecting country's legal system and sovereignty.
Under the US and Switzerland agreement, each bank will negotiate individually with the US authorities. The fines that are going to be imposed by the US authorities will be assessed at 20-50 per cent of the aggregate value of any undeclared accounts held by Americans, depending on the time they accounts were open — before 2009 or since then.
The deal offers will force Swiss banks to disclose all of their cross-border activities, provide details on the accounts of US citizens, and give information on the sources and destinations of transferred funds in relation to secret American accounts.
However, Heather Lowe, director of government affairs at anti-graft watchdog Global Financial Integrity, commented on Reuters about the US and Switzerland agreement. “On the whole it's a pretty strong agreement. However, the settlement program has gaps, specifically whether banks could settle without turning over U.S. client names…That is definitely one open question here.”