Pictet to pay $123m for 'hiding' $5.6bn in offshore accounts

investmentweek.co.uk:

Pictet was accused of setting up 1,637 secret bank accounts in Switzerland on behalf of US taxpayer clients, which enabled them to evade $50.6m in taxes between 2008 and 2014.

The Swiss private bank was accused of setting up 1,637 secret bank accounts in Switzerland on behalf of US taxpayer clients, which enabled them to evade $50.6m in taxes between 2008 and 2014, the US Department of Justice said in a statement on 4 December. 

Pictet Group posts 3.7% drop in profits for H1 2023

As part of the resolution, Banque Pictet entered into a deferred prosecution agreement to pay approximately $122.9m to the US Treasury.

Acting deputy assistant attorney general Stuart Goldberg said: «Today, Banque Pictet et Cie admitted to actively helping US taxpayers use coded accounts, foreign trusts and entities, nominee beneficiaries and other deceits to conceal their income and assets abroad.

»For this criminal conduct the bank will be paying nearly $122.9m in restitution, disgorgement of fees and a financial penalty, and is required to fully cooperate with investigations relating to these secret accounts."

US attorney for the Southern District of New York Damian Williams added: «As it has admitted today, Banque Pictet knowingly conspired to conceal from the IRS the income generated by accounts which held more than $5.6bn.

»Thanks to the hard work of the career prosecutors of this office and our law enforcement partners, Banque Pictet has agreed to pay more than $122.9m and will continue to cooperate with the Department of Justice. Rooting out financial malfeasance remains a priority for this office, and we encourage companies and financial institutions to come to us to report wrongdoing before we come to you."

IRS criminal investigation