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Abstract: 

The U.S. Department of Justice (DOJ) “Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks” penalizes Swiss banks that held “U.S. Related Accounts” on or after August 1, 2008, but Swiss banks that do not enter the DOJ Program risk being indicted in the U.S--a potentially fatal alternative. The banks were given a short window to consider their options—some deadlines have already passed—and their decision is made even more difficult by the Program’s short time frame, broad definition of U.S. Related Accounts, harsh penalty regime, and uncertainty under Category 3. Supplemental guidance from the DOJ leaves many issues unaddressed.

Keywords: offshore accounts, tax evasion, Swiss banks, FATCA, DOJ

Affiliations:  1: BakerHostetler.