Around 80 of the 106 Swiss banks which have struck a deal with the US government on tax evasion could face smaller fines than they had originally feared if they cooperate more with the US, reports Swiss publication Finanz und Wirtschaft.

Around 80 of the 106 Swiss banks which have struck a deal with the US Government on tax evasion could face smaller fines than they had originally feared if they cooperate more fully, reports Swiss publication Finanz und Wirtschaft.

The publication said that those banks with some exposure to US clients evading taxes could pay fines 20 to 50 per cent lower than initially expected if they help US prosecutors. Since December 31, Swiss banks have sent US authorities information about the number of clients they have served and also clarified what the penalties for storing money in offshore accounts will be.

Last year, the US and Swiss governments signed an accord under which hundreds of Swiss banks can state whether they have, or have not, violated US laws on tax. So far more than a third of the country’s 300-plus collection of banks have signed, including Lombard Odier, Vontobel, Banque Cantonale Vaudoise and St Galler Kantonalbank. The move followed an investigation of roughly a dozen Swiss banks, including Credit Suisse in the US.

Meanwhile, a number of Swiss banks, such as UBS and Julius Baer, among others, no longer provide offshore banking to US citizens.

Finanz und Wirtschaft reported that category 2 banks - which have good reasons to believe that they have violated US tax law - will escape prosecution if they cooperate more fully with authorities and pay fines. According to the paper, each bank’s individual situation and fine will be determined in September.

Last month, the US Department of Justice extended the deadline for category 2 banks by one month. As part of the deal, banks must supply the US authorities with information on their cross-border relations, particularly leaver lists, but are not required to hand over the names of clients.

In May, Credit Suisse pleaded guilty to conspiracy to help US citizens evade taxes and agreed to pay a $2.82 billion settlement with US authorities. Earlier this month, the Swiss bank asked a US court to delay its sentencing in its tax evasion case so it can gain an exemption from the US Labor Office to ensure it can continue managing billions of assets in its pension plan.