The Swiss Bank Program created by the Department of Justice is an attractive offer to offshore banks.  Banks that come forward voluntarily to provide information on activities related to tax evasion can avoid being prosecuted for tax crimes or for monetary transaction offenses under Titles 18, 26, and 31 of the U.S. code.  The banks will have to pay fines, but they will not be prosecuted for their activities and the fines will be more limited than the money the banks would likely need to turn over in forfeiture, restitution and other penalties if prosecuted criminally. 

The United States Senate may be the only thing standing in the way of your Swiss bank facing the maximum pressure to provide information about your personal account details to the tax enforcement division of the Department of Justice (DOJ).  

The Department of Justice and U.S. authorities have been going after offshore banks that are suspected of helping accountholders in the United States to evade their tax obligation.  Banks that believe they could be criminally prosecuted but that are not yet under investigation can head off criminal charges by coming forward voluntarily in order to participate in the DOJ’s Swiss Bank Program.  Finter Bank, a Zurich bank, has become the latest bank to sign a non-prosecution agreement through the Swiss Bank Program. 

Swiss banks have taken part in a long-standing practice of secrecy that people throughout the United States have taken advantage of in order to avoid reporting income and paying taxes on some investment income.  

Banks can be prosecuted by U.S. authorities for failure to report offshore accounts, for failure to report suspicious transactions, for processing suspicious transactions, and a host of other criminal acts. Many of the criminal acts that banks are prosecuted for involve the financial institution facilitating wrongdoing on the part of customers with which it is conducting business.