The Department of Justice and the Internal Revenue Service continue to aggressively pursue legal action against accountholders affiliated with the United States who have undeclared offshore financial accounts. U.S. authorities are also going after banks who helped accountholders avoid their IRS reporting requirements. 

Berner Kantonalbank AG is one of many banks to become part of the Swiss Bank Program. The Swiss Bank Program was created by the Department of Justice to let banks avoid prosecution under U.S. tax laws and U.S. monetary laws. If the banks come forward, report their activities in connection with facilitating tax evasion and turn over information on U.S. accountholders, they can avoid having authorities press criminal charges.  The problem for accountholders is that when these banks come forward, this can lead to individuals being prosecuted for tax crimes. 

In 1996, Switzerland and the United States signed a tax treaty. After the signing, however, Swiss banks continued not to cooperate with U.S. authorities who wanted information on accountholders who were connected to the United States and who may have been evading their tax obligations.  

When UBS AG made a public announcement in August of 2008 that it was under investigation by United States authorities, many of its banking customers took their accounts elsewhere. One of the places they took the accounts to was Finter Bank, a Zurich based bank.  After August 2008, Finter Bank had an estimated 283 accounts linked to U.S. accountholders. These accounts had an aggregate minimum balance equal to approximately $235 million.  

The Chief of the IRS Criminal Investigations Division was recently quoted as saying: “Fighting offshore tax evasion continues to be a top priority for IRS-CI and we will trace unreported funds anywhere in the world.”  The quote was in response to a March 2015 agreement reached between the United States Department of Justice and one of the 10 largest private banks in Switzerland.  The agreement was reached through the Swiss Bank Program started by the DOJ and announced on August 29, 2013.