Swiss bank to pay for its role in tax dodging

THE SWISS bank used by the convicted conman known as “The Wolf of Wall Street” agreed to pay almost $188 million (R2.9 billion) to avoid prosecution for helping US clients avoid taxes through such methods as providing untraceable gold bars and cash. Union Bancaire Privee (UBP) helped hide assets from the Internal Revenue Service (IRS) by letting two US clients withdraw gold bars valued at more than $50m, according to a non-prosecution agreement released this week by the Justice Department. That would be more than a ton of gold at current prices. The accord is the second-largest penalty secured by the US since March under a disclosure programme that requires Swiss firms to say how they helped Americans cheat and where their money went. Through 76 accords, the banks have paid $1.3bn. The Genevabased bank signed a statement of facts with details of misconduct stretching back decades, saying it helped US clients hide accounts and assets from the IRS. From 2008 to 2013, the bank managed 2 919 US accounts with as much as $4.9bn in assets handled by more than 200 private bankers. “UBP pays a heavy price for its criminal conduct,” said acting assistant attorney-general Caroline Ciraolo of the Justice Department’s tax division. Since securing $211m from BSI last March, the US settled with dozens of banks. The payments have escalated in recent weeks. Since December 15, Credit Agricole (Suisse) agreed to pay $99.2m; Bank Lombard Odier paid $99.8m and Bank J Safra Sarasin agreed to pay $85.8m. – Bloomberg