trending Market Intelligence /marketintelligence/en/news-insights/trending/7eUEkFpUZkjO1-0hKzCNeA2 content esgSubNav
In This List

Liechtensteinische Landesbank unit settles US tax dispute for $10.7M

Blog

Banking Essentials Newsletter: July Edition - Part 3

Blog

Banking Essentials Newsletter: July Edition - Part 2

Blog

Anticipate the Unknown Go Beyond Fundamentals to Uncover Early Signs of Private Company Credit Deterioration

Blog

Taking Loss Given Default Estimation to the Next Level: An Aspiration for All Creditors, Not Just Banks


Liechtensteinische Landesbank unit settles US tax dispute for $10.7M

Liechtensteinische Landesbank AG unit LLB Verwaltung (Schweiz) AG reached an out-of-court nonprosecution agreement with the U.S. Justice Department in connection with the U.S. business of predecessor Liechtensteinische Landesbank (Schweiz) AG, or LLB-Switzerland, which has been accused of offering wealthy U.S. citizens tax-friendly offshore accounts.

The bank will pay a penalty of roughly $10.7 million as part of the agreement, which it said is fully covered by provisions and will have no effect on the ongoing results of the group. The lender also agreed to cooperate in any related criminal or civil proceedings in return for the DOJ's agreement not to prosecute the company for tax-related criminal offenses committed by LLB-Switzerland, which ceased its banking operations at the end of 2013.

LLB-Switzerland and some of its employees, including members of its management, had conspired with a Swiss asset manager and U.S. clients to help the clients avoid taxes on their assets and income through various means, including using nominee firms based in tax haven jurisdictions and Swiss bank secrecy protections, according to the DOJ.