All data is delayed
See More

US probes Swiss bank over tax

Nov 25 2012 17:31
Zurich - Swiss private bank Pictet is under investigation by the US authorities, the bank said on Sunday, making it the latest Swiss bank to come under scrutiny in a US probe into the use of foreign banks by wealthy Americans seeking to avoid paying tax.

Pictet said in a statement the US department of justice had made a "general inquiry" into its wealth management business with US clients, adding it would cooperate fully.

The US investigation is part of a global offensive on the tradition of strict banking secrecy that has helped Switzerland build up a $2 trillion offshore wealth management industry.

Pictet issued the statement after Der Sonntag newspaper reported that the US authorities were investigating Switzerland's largest unlisted private bank.

"Pictet has made it a priority to ensure that its business with US clients complies with all the relevant laws and regulations governing its conduct," the bank said.

Pictet denied earlier this year it was being investigated by US officials even though it had handed over some details of specific accounts to the U.S. authorities in November 2010.  

UBS was the first Swiss bank to come under scrutiny by the US authorities in a tax evasion crackdown, an investigation it settled in 2009 by handing over client data, admitting wrongdoing, and paying a $780m fine to avert prosecution.

US officials have subsequently mined the UBS data as well as a flood of voluntary disclosures by US citizens and have widened their investigation to other Swiss banks, including Credit Suisse and Julius Baer.

Switzerland is trying to get those investigations dropped in return for the payment of fines and the transfer of names of US clients. It is also seeking a deal to shield the remainder of its 300 or so banks from US prosecution.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.



Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills..

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote