Another Swiss bank under investigation after tax deal

Private bank Rahn & Bodmer is under investigation by U.S. authorities, it said on Wednesday, following a recent deal to allow some Swiss banks to pay fines instead of facing prosecution for tax evasion by their U.S. customers.

Reuters News reports that the deal applies to about 100 second-tier Swiss banks, which may have to disclose information and face penalties of up to 50 percent of assets they manage for wealthy Americans.

A group of banks already under U.S. criminal investigation includes Credit Suisse, Julius Baer and state-backed regional bank Zuercher Kantonalbank. A second group of dozens more Swiss banks, which also helped wealthy Americans hide their assets, are not yet under formal investigation.

The bank was informed last week that it was under investigation, Rahn said. A spokeswoman for the U.S. Justice Department declined to comment.

The bank will not need to set aside capital to meet regulatory requirements if it has to pay a fine, as it has provisions which will cover a potential payment, Rahn said.

Hit the link below to access the complete Reuters article:

Another Swiss private bank under U.S. tax investigators' spotlight

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images: © Lisamarie Babik, © Jan Krömer

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