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Zurich - Valiant Holding has become the first Swiss bank to say it will work with US officials in a crackdown on wealthy Americans evading taxes through hidden offshore accounts.
The Swiss regional bank said it would participate in the scheme brokered by the two countries' governments because it could not say definitively that all its US clients paid their taxes.
Valiant said: "The costs of the US programme will not jeopardise the financial stability of Valiant in any way. This decision does not endanger the distribution of an unchanged dividend."
Client funds
A host of banks are expected to tell Swiss financial regulator Finma this week that they will bow to US pressure to come clean on any past transgressions and face up to fines.
Valiant said an internal review showed it had never actively sought US clients or talked to Americans to drum up business. The bank said less than 0.1% of its clients were American.
By contrast, Zurich-based bank Vontobel said it would participate in the US programme, but declare itself free of hidden US client funds. The bank began transferring business with wealthy Americans into an entity registered with the Securities and Exchange Commission in 2008, when the crackdown intensified.
Share prices
With roughly $19bn in assets, Valiant is dwarfed by larger Swiss private banks such as UBS, which manages about $2.4trn.
The fines can be as much as 50% of assets managed on behalf of American clients, depending on how egregiously the banks acted in their dealings with those customers.
Fines would have to be disclosed to investors because they could have an impact on share prices.
Others being scrutinised are listed private banks such as EFG International, St Galler Kantonalbank, which owns private bank Hyposwiss, Linth Bank and Banque Cantonale Vaudoise.
These banks are likely to offer the first indication of how many firms the US authorities can bring to cooperate because, as publicly listed stocks, they are subject to disclosure rules.
Switzerland has hundreds of unlisted banks.
The Swiss regional bank said it would participate in the scheme brokered by the two countries' governments because it could not say definitively that all its US clients paid their taxes.
Valiant said: "The costs of the US programme will not jeopardise the financial stability of Valiant in any way. This decision does not endanger the distribution of an unchanged dividend."
Client funds
A host of banks are expected to tell Swiss financial regulator Finma this week that they will bow to US pressure to come clean on any past transgressions and face up to fines.
Valiant said an internal review showed it had never actively sought US clients or talked to Americans to drum up business. The bank said less than 0.1% of its clients were American.
By contrast, Zurich-based bank Vontobel said it would participate in the US programme, but declare itself free of hidden US client funds. The bank began transferring business with wealthy Americans into an entity registered with the Securities and Exchange Commission in 2008, when the crackdown intensified.
Share prices
With roughly $19bn in assets, Valiant is dwarfed by larger Swiss private banks such as UBS, which manages about $2.4trn.
The fines can be as much as 50% of assets managed on behalf of American clients, depending on how egregiously the banks acted in their dealings with those customers.
Fines would have to be disclosed to investors because they could have an impact on share prices.
Others being scrutinised are listed private banks such as EFG International, St Galler Kantonalbank, which owns private bank Hyposwiss, Linth Bank and Banque Cantonale Vaudoise.
These banks are likely to offer the first indication of how many firms the US authorities can bring to cooperate because, as publicly listed stocks, they are subject to disclosure rules.
Switzerland has hundreds of unlisted banks.
