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More Banks Choose to Make Deals With the Department of Justice

Offshore Account Update

Posted in on February 12, 2016

Edmond de Rothschild (Suisse) SA and Edmond de Rothschild (Lugano) are two financial institutions that are part of Edmond de Rothschild Switzerland (EdR).  These two institutions made a deal with the Department of Justice in December so EdR can avoid criminal prosecution.

The institutions were at risk of being charged with helping to facilitate tax evasion, as the banks reportedly aided U.S. accountholders in hiding funds offshore over the course of more than a decade.  EdR Switzerland had 950 U.S. affiliated accounts at one point, with as much as $2.16 billion in assets in these accounts at one time. 

Avoiding criminal prosecution is possible for EdR Switzerland because of the Swiss Bank Program. This program grants amnesty from prosecution when banks pay fines and provide actionable information about U.S.-affiliated individuals with accounts offshore.  Any accountholders need to act quickly to speak with a New Jersey tax evasion attorney to find out if they can or should take advantage of the Offshore Voluntary Disclosure Program, which allows accountholders to limit their own penalties as long as they come forward voluntarily.

OVDP is only an option in limited circumstances and is not an option if you are already facing IRS action; so it is best to act now to find out what your options are.  These two Edmond de Rothschild institutions are among many banks that have decided to make deals with the DOJ to save themselves at the expense of customers; so everyone with offshore funds should find out now what they can do to try to protect themselves from IRS action. 

EdR Switzerland Provides Info on Accountholders

EdR Switzerland has agreed to pay $45.245 million in penalties for actions that helped U.S.-affiliated accountholders to evade tax obligations. These actions included creating coded accounts; structuring transactions to avoid reporting requirements; facilitating the use of sham entities and the submission of inaccurate IRS documents; holding mail; and helping accountholders to repatriate funds without triggering the attention of taxing authorities.

EdR Switzerland has also been required to provide details on accountholders, make a complete disclosure of all cross-border activities, and cooperate in treaty requests for information about offshore accounts. The info provided on accountholders must be very detailed. It needs to be provided on an account-by-account basis and information must be made available regarding other banks that transferred funds into secret accounts or accepted funds transferred from secret accounts.  All accountholders with EdR Switzerland must also come into compliance with tax laws or they will have their accounts closed going forward.

With the information provided by EdR Switzerland, the IRS will have ample information necessary to take action against accountholders for failure to file annual reports notifying the IRS of foreign accounts (FBARs).  It is important to realize that any non-reporting of offshore accounts can trigger IRS action. 

Kevin Thorn, a tax evasion attorney in New Jersey, can provide advice to anyone who is concerned that information about their offshore accounts has been turned over or will be turned over. Contact him right away to find out more about your rights and legal options.


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