US Department of Justice Offers Immunity to Over 50 Banks in Swiss Bank Account Scandal

More than 50 banks, including prominent international lenders such as Standard Chartered, Deutsche Bank, and BNP Paribas, have received immunity from criminal prosecution in the US as part of a plea bargain with the Department of Justice. In exchange for this protection, the banks have collectively paid nearly £400 million in fines to the American government. This move is a part of President Barack Obama's crackdown on tax evasion, which has seen a growing number of banks and financial institutions being investigated and penalized for their role in hiding assets in secret Swiss accounts and offshore trusts.

Key Takeaways:

• The US Department of Justice's "Swiss Banks Programme" has attracted 57 banks, with almost £400 million in fines paid by these institutions to the American government.
• The programme requires banks to hand over details of customers suspected of hiding money in secret Swiss accounts and offshore trusts, and to cooperate with criminal investigations into individuals, including employees.
• In exchange for immunity, banks have agreed to inform on rivals that transferred cash into secret accounts or accepted funds when the accounts were closed.
• Losing their banking license in the US would be a crippling blow to banks such as Standard Chartered and HSBC, which have been under investigation.
• Richard Murphy, a tax campaigner, criticized the deal, stating that the companies are "getting off lightly" for their crimes.
• Banks such as HSBC, which are already under criminal investigation, are not eligible to receive immunity from prosecution.

Statistics:

• £400 million: The total amount of fines paid by banks to the American government as part of the plea bargain.
• 57: The number of banks that have signed up to the Department of Justice's "Swiss Banks Programme".
• £4.2 million: The fine paid by Standard Chartered in connection with its Swiss private banking operation.
• 2013: The year in which banks were instructed to come forward if they had reason to believe they had committed tax-related criminal offences in connection with undeclared US-related accounts.

Sources:

• James Salmon, "US Department of Justice offers immunity to more than 50 banks in Swiss bank account scandal", The Telegraph, no date mentioned.
• The Telegraph, "US Department of Justice offers immunity to more than 50 banks in Swiss bank account scandal", no date mentioned.