Union Bancaire Privée (UBP) Non-Prosecution Agreement: What You Need to Know

In December 2020, the U.S. Department of Justice (DOJ) announced a non-prosecution agreement with Union Bancaire Privée (UBP), a Swiss bank, for its role in aiding U.S. taxpayers hiding assets overseas to avoid taxes. This agreement highlights the continued scrutiny on Swiss banks and the importance of compliance with U.S. tax laws.

Here`s what you need to know about the UBP non-prosecution agreement:

Background

The DOJ has been investigating Swiss banks for aiding U.S. taxpayers in hiding assets overseas since 2008. The investigations have resulted in billions of dollars in fines and penalties against Swiss banks, including UBS, Credit Suisse, and Julius Baer.

UBP was one of several Swiss banks under investigation by the DOJ. The bank was accused of opening and maintaining undeclared accounts for U.S. taxpayers, allowing them to evade U.S. taxes.

Non-Prosecution Agreement

UBP agreed to a non-prosecution agreement with the DOJ. As part of the agreement, UBP admitted to wrongdoing and agreed to pay a penalty of $187.8 million.

The penalty amount was based on the value of UBP`s undeclared accounts held by U.S. taxpayers during the period from August 1, 2008, through December 31, 2015. UBP also agreed to cooperate with ongoing investigations and implement measures to ensure compliance with U.S. tax laws.

Impact

The UBP non-prosecution agreement serves as a reminder that Swiss banks continue to face scrutiny for their role in aiding U.S. taxpayers in hiding assets overseas to avoid taxes. It also highlights the importance of compliance with U.S. tax laws.

Swiss banks that have not yet resolved their U.S. tax issues should take note of the DOJ`s continued enforcement efforts. Those that do not come forward and cooperate with the DOJ risk facing significant penalties and possible criminal charges.

Conclusion

The UBP non-prosecution agreement is the latest in a series of enforcement actions taken by the DOJ against Swiss banks. It highlights the importance of compliance with U.S. tax laws and serves as a reminder that Swiss banks continue to face scrutiny for their role in aiding U.S. taxpayers in hiding assets overseas to avoid taxes.

Swiss banks that have not yet resolved their U.S. tax issues should consult with legal counsel to determine the best course of action. Compliance with U.S. tax laws is critical to avoiding significant penalties and possible criminal charges.