Swiss bank enters tax evasion program

Another Swiss bank has signed up for a voluntary Justice Department program aimed at cracking down on offshore tax evasion. 

Vadian Bank, based in St. Gallen, Switzerland, agreed to pay $4.25 million under the agreement, in exchange for avoiding prosecution.

{mosads}Under the Swiss bank program, financial institutions also have to give detailed information on their accounts held by U.S. taxpayers, and relationships with other banks.

The Swiss bank BSI became the first to sign up for the Justice program in March, paying $211 million, and department officials said then they expect more to follow suit.

“Simultaneously, the department has opened investigations of culpable individuals and entities based on information obtained from the Swiss banks in the program, and will pursue and prosecute those engaged or assisting others in evading U.S. tax obligations,” Caroline Ciraolo, an acting assistant general, said Friday.