Since our last update, five more banks have been added to the Swiss Bank "Blacklist:"
Privatbank IHAG Zürich AG (effective 11/24/15)
Deutsche Bank (Suisse) SA (effective 11/24/15)
EFG Bank AG (effective 12/3/15)
EFG Bank European Financial Group SA, Geneva (effective 12/3/15)
Aargauische Kantonalbank (AKB) (effective 12/8/15)
According to the US Department of Justice (DOJ), the Swiss Bank Program, which was announced on August 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities with the United States government. Swiss banks eligible to enter the program were required to advise the DOJ, by Dec. 31, 2013, that they had reason to believe they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts (banks already under criminal investigation for their Swiss-banking activities and individuals were expressly excluded from the program).
Those with undisclosed accounts at any of the Swiss Banks that entered into the Swiss Bank Program may utilize one of the Offshore Voluntary Disclosure Programs (OVDP) currently administered by the IRS. While the Department of Justice has repeatedly implied that those account owners will automatically be subject to a 50% offshore penalty, this is not always the case. Those who utilize the rigorous full OVDP program may opt-out — if facts warrant it — and be subjected to FBAR penalty procedures. Or, if a taxpayer was non-willful, they may qualify for one of the less-oppressive disclosure programs. If the accounts failed to earn any income or did not increase taxes, the case may involve filing delinquent tax returns. Please note, this is not a so-called "soft disclosure," but rather an IRS-approved mechanism to reenter into compliance.
In the video below I explain your options if your bank is in the Swiss Bank Program, particularly how IRS OVDP FAQ 7.2 comes into play.
Take a look at the list below. You'll see that the "Swiss Bank Program" isn't just for Swiss Banks. Instead, it's for any banks that employ the Swiss "style" – assisting US taxpayers in evading payment of taxes to the IRS.
The complete blacklist as of 12/7/15, according to the IRS
(Note: the IRS's list has not been updated to include Aargauische Kantonalbank).
- UBS AG
- Credit Suisse AG, Credit Suisse Fides, and Clariden Leu Ltd.
- Wegelin & Co.
- Liechtensteinische Landesbank AG
- Zurcher Kantonalbank
- swisspartners Investment Network AG, swisspartners Wealth Management AG, swisspartners Insurance Company SPC Ltd., and swisspartners Versicherung AG
- CIBC FirstCaribbean International Bank Limited, its predecessors, subsidiaries, and affiliates
- Stanford International Bank, Ltd., Stanford Group Company, and Stanford Trust Company, Ltd.
- The Hong Kong and Shanghai Banking Corporation Limited in India (HSBC India)
- The Bank of N.T. Butterfield & Son Limited (also known as Butterfield Bank and Bank of Butterfield), its predecessors, subsidiaries, and affiliates
- Sovereign Management & Legal, Ltd., its predecessors, subsidiaries, and affiliates (effective 12/19/14) (click here for our article on Sovereign's interesting marketing strategy.
- Bank Leumi le-Israel B.M., The Bank Leumi le-Israel Trust Company Ltd, Bank Leumi (Luxembourg) S.A., Leumi Private Bank S.A., and Bank Leumi USA (effective 12/22/14)
- BSI SA (effective 3/30/15)
- Vadian Bank AG (effective 5/8/15)
- Finter Bank Zurich AG (effective 5/15/15)
- Societe Generale Private Banking (Lugano-Svizzera) SA (effective 5/28/15)
- MediBank AG (effective 5/28/15)
- LBBW (Schweiz) AG (effective 5/28/15)
- Scobag Privatbank AG (effective 5/28/15)
- Rothschild Bank AG (effective 6/3/15)
- Banca Credinvest SA (effective 6/3/15)
- Societe Generale Private Banking (Suisse) SA (effective 6/9/15)
- Berner Kantonalbank AG (effective 6/9/15)
- Bank Linth LLB AG (effective 6/19/15)
- Bank Sparhafen Zurich AG (effective 6/19/15)
- Ersparniskasse Schaffhausen AG (effective 6/26/15)
- Privatbank Von Graffenried AG (effective 7/2/15)
- Banque Pasche SA (effective 7/9/15)
- ARVEST Privatbank AG (effective 7/9/15)
- Mercantil Bank (Schweiz) AG (effective 7/16/15)
- Banque Cantonale Neuchateloise (effective 7/16/15)
- Nidwaldner Kantonalbank (effective 7/16/15)
- SB Saanen Bank AG (effective 7/23/15)
- Privatbank Bellerive AG (effective 7/23/15)
- PKB Privatbank AG (effective 7/30/15)
- Falcon Private Bank AG (effective 7/30/15)
- Credito Privato Commerciale in liquidazione SA (effective 7/30/15)
- Bank EKI Genossenschaft (effective 8/3/15)
- Privatbank Reichmuth & Co. (effective 8/6/15)
- Banque Cantonale du Jura SA (effective 8/6/15)
- Banca Intermobiliare di Investimenti e Gestioni (Suisse) SA (effective 8/6/15)
- bank zweiplus ag (effective 8/20/15)
- Banca dello Stato del Cantone Ticino (effective 8/20/15)
- Hypothekarbank Lenzburg AG (effective 8/27/15)
- Schroder & Co. Bank AG (effective 9/3/15)
- Valiant Bank AG (effective 9/10/15)
- Bank La Roche & Co AG (effective 9/15/15)
- Belize Bank International Limited, Belize Bank Limited, Belize Corporate Services Limited, their predecessors, subsidiaries, and affiliates (effective 9/16/15)
- St. Galler Kantonalbank AG (effective 9/17/15)
- E. Gutzwiller & Cie, Banquiers (effective 9/17/15)
- Migros Bank AG (effective 9/25/15)
- Graubundner Katonalbank (effective 9/25/15)
- BHF-Bank (Schweiz) AG (effective 10/1/15)
- Finacor SA (effective 10/6/15)
- Schaffhauser Kantonalbank (effective 10/8/15)
- BBVA Suiza S.A. (effective 10/16/15)
- Piguet Galland & Cie SA (effective 10/23/15)
- Luzerner Kantonalbank AG (effective 10/29/15)
- Habib Bank AG Zurich (effective 10/29/15)
- Banque Heritage SA (effective 10/29/15)
- Hyposwiss Private Bank Genève S.A. (effective 10/29/15)
- Banque Bonhôte & Cie SA (effective 11/3/15)
- Banque Internationale a Luxembourg (Suisse) SA (effective 11/12/15)
- Zuger Kantonalbank (effective 11/12/15)
- Standard Chartered Bank (Switzerland) SA, en liquidation (effective 11/13/15)
- Maerki Baumann & Co. AG (effective 11/17/15)
- BNP Paribas (Suisse) SA (effective 11/19/15)
- KBL (Switzerland) Ltd. (effective 11/19/15)
- Bank CIC (Switzerland) Ltd. (effective 11/19/15)
- Privatbank IHAG Zürich AG (effective 11/24/15)
- Deutsche Bank (Suisse) SA (effective 11/24/15)
- EFG Bank AG (effective 12/3/15)
- EFG Bank European Financial Group SA, Geneva (effective 12/3/15)
If your bank is on the list and you're unsure what to do, contact us. We're here to help.
