ZURICH—The U.S. Justice Department said Tuesday two more Swiss
banks have completed the self-reporting program for hidden American
accounts, including the Swiss unit of Socié té Gé né rale SA,
resulting in more than $22 million in penalties.
Socié té Gé né rale Private Banking SA maintained undeclared
accounts in the name of "sham entities" for U.S. clients, the
Justice Department said, and opened accounts for Americans who had
left Zurich-based UBS AG after Switzerland's biggest bank came
under U.S. scrutiny for aiding tax evasion several years ago. Socié
té Gé né rale's Swiss bank will pay a $17.8 million penalty,
according to the statement.
A spokesman for Socié té Gé né rale declined to comment.
In addition, Berner Kantonalbank AG, a publicly backed,
181-year-old lender in the canton of Bern, also opened and
maintained undeclared accounts for Americans, the Justice
Department said. Berner Kantonalbank had about 720 U.S. accounts
since August 2008, the Justice Department said, with roughly $176.5
million in assets. The bank will pay a penalty of $4.6 million.
Berner Kantonalbank said that its business with U.S. clients is
"marginal," and that the penalty will have no impact on its
earnings this year.
Banks in the Justice Department's program are required to hand
over information about their U.S. accounts but not the identities
of clients, which are protected under Switzerland's bank secrecy
laws. The banks pay penalties based on the amount of undeclared
U.S. money determined to be on their books minus amounts included
in accounts that clients voluntarily disclose, with the bank's
encouragement.
In exchange for completing the program, the banks receive
guarantees that they won't be criminally prosecuted for aiding tax
evasion. The Justice Department unveiled its program in 2013, and
has announced that 11 Swiss banks have completed the process.
Separate from those in the program, a handful of Swiss banks
remain under Justice Department investigation for allegedly aiding
U.S. tax evasion.
Write to John Letzing at john.letzing@wsj.com
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