Schaffhauser Kantonalbank (SHKB) is a Swiss Bank that has a long history of allegedly helping U.S. accountholders to conceal income from taxing authorities in the United States. SHKB entered into a Qualified Intermediary Agreement in 2001 to make sure U.S. investors were paying their taxes on offshore income, but SHKB reportedly found ways around the agreement almost immediately-including requiring accountholders to have their mail held and prohibiting the purchase of U.S. securities.

Anyone who is a citizen of the United States must provide annual reports of money and assets held in accounts located in offshore financial institutions.  This requirement was established by the Foreign Account Tax Compliance Act (FATCA) in an effort to help fight tax evasion.  Because some individuals do not voluntarily report their accounts as required, the U.S. government is also seeking to obtain information from foreign financial institutions (FFIs). 

Société Générale Private Banking is one of many offshore banks that believed it could potentially be prosecuted by U.S. authorities for its role in helping U.S.-affiliated accountholders to avoid following tax laws.  Banks like Société Générale Private Banking have been given the opportunity to participate in an amnesty program called the Swiss Bank Program. 

The Department of Justice has entered into non-prosecution agreements with 15 foreign banks as of July 2015. The non-prosecution agreements were negotiated as part of the Swiss Bank Program. The Swiss Bank Program grants amnesty and ensures banks will not have to face criminal charges for helping to facilitate tax evasion. In exchange for the banks not having to face criminal charges, the banks must turn on their own employees and provide enough details that U.S. authorities can use to go after American individuals and businesses who did not follow U.S. tax law. 

The Department of Justice allows banks who helped facilitate tax evasion to resolve potential criminal liability through participation in the Swiss Bank Program.  Four banks have now signed agreements with the DOJ.  Chief Richard Weber for the IRS-Criminal Investigation (CI) indicates that the fact these four banks have entered into agreements signals “a change in terrain for offshore banking.”  He warns: “No longer is it safe to hide money offshore and expect that it will not be discovered.  IRS CI Special Agents will continue to follow the money to find those who circumvent the offshore disclosure laws and hold them accountable.”