The firm joins the raft of Swiss banks that have signed NPAs and paid fines in exchange for drawing a line under undisclosed offshore accounts under the DoJ's Swiss Bank Program. Schroder & Co Bank, a Swiss business of UK-listed Schroders, recently signed an NPA with the department and agreed to pay a $10.35 million penalty.

Finacor helped US clients hide their undeclared accounts, including by concealing the identity of its clients from its Swiss custodian banks and by using code words for money transfers to conceal the repatriation of undeclared assets and income back into the US. The firm also sent checks to the US in amounts below $10,000 to assist clients in avoiding US currency transaction reporting requirements.

Under the NPA, Finacor agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared US accounts and pay penalties in return for the department’s agreement not to prosecute Finacor for tax-related criminal offenses.

“Through the Swiss Bank Program, we have received information not just about culpable banks, but also asset management and investment advisory firms that played a role in the concealment of US-related accounts and the evasion of US taxes. Now is the time for these firms to come forward, accept responsibility for their actions and reach a resolution with the department,” said acting assistant attorney general Caroline Ciraolo of the DoJ's tax division. 

Some 41 institutions have so far signed NPAs with the US under the DoJ program (source: Bloomberg).