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Swiss bank Banque Pictet admits hiding $5.6 billion of Americans’ money from IRS – CNBC

  • A major Swiss bank has admitted to colluding with U.S. taxpayers and others to hide more than $5.6 billion from the Internal Revenue Service.
  • Banque Pictet, the private banking arm of Pictet Group, agreed to pay approximately $122.9 million in restitution and fines in an agreement with prosecutors.
  • If the bank complies with the terms of the agreement, the Justice Department is expected to delay prosecution for three years and then dismiss the conspiracy to defraud charges against the IRS.

A sign is installed outside Banque Pictet & Cie SA on Friday, October 16, 2015 in Geneva, Switzerland.

Luke McGregor Bloomberg | Getty Images

A major Swiss bank has admitted to colluding with U.S. taxpayers to hide more than $5.6 billion from the Department of Justice’s Internal Revenue Service. announced Monday.

Banque Pictet, the private banking arm of the 218-year-old Pictet Group, will pay approximately $122.9 million in restitution and fines as part of the agreement with prosecutors.

From 2008 to 2014, the bank opened 1,637 accounts on behalf of American customers, who collectively evaded approximately $50.6 million in U.S. taxes, according to the Justice Department.

The account itself held more than $5.6 billion of the roughly $20 billion in total U.S. taxpayer assets the bank managed during the period.

The Justice Department agreed to delay prosecution for three years and then dismiss conspiracy to defraud charges against the IRS if the bank complied with the terms of the agreement.

As part of the deal, the bank also agreed to cooperate with ongoing investigations into hidden bank accounts.

“Eradicating financial fraud remains our agency’s priority,” Damien Williams, the attorney for the Southern District of New York, said in a statement.

“We encourage businesses and financial institutions to come to us to report fraud before we come to you,” he added.

This is breaking news. Please check back for the latest information.

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