A sign sits outside Banque Pictet & Cie SA in Geneva, Switzerland, on Friday, Oct. 16, 2015.
Luke MacGregor | Bloomberg | Getty Images
A major Swiss bank admitted to conspiring with U.S. taxpayers and others to hide over $5.6 billion from the Internal Revenue Service, the Department of Justice announced Monday.
Banque Pictet, the private banking division of the 218-year-old Pictet Group, will pay about $122.9 million in restitution and penalties as part of an agreement with prosecutors.
Between 2008 and 2014, the bank had 1,637 accounts on behalf of American clients, who collectively evaded approximately $50.6 million in U.S. taxes, the DOJ said.
The accounts themselves held more than $5.6 billion of the roughly $20 billion in total assets from U.S. taxpayers that the bank managed during the relevant period.
If the bank complies with the terms of its deal, the Justice Department has agreed to defer prosecution for three years and then dismiss a charge of criminal conspiracy to defraud the IRS.
As part of the deal, the bank also agreed to cooperate with ongoing investigations into hidden bank accounts.
“Rooting out financial malfeasance remains a priority for this Office,” Damian Williams, U.S. Attorney for the Southern District of New York, said in a statement.
“We encourage companies and financial institutions to come to us to report wrongdoing before we come to you,” he added.
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