Société Générale Private Banking is one of many offshore banks that believed it could potentially be prosecuted by U.S. authorities for its role in helping U.S.-affiliated accountholders to avoid following tax laws.  Banks like Société Générale Private Banking have been given the opportunity to participate in an amnesty program called the Swiss Bank Program. 

The Department of Justice has entered into non-prosecution agreements with 15 foreign banks as of July 2015. The non-prosecution agreements were negotiated as part of the Swiss Bank Program. The Swiss Bank Program grants amnesty and ensures banks will not have to face criminal charges for helping to facilitate tax evasion. In exchange for the banks not having to face criminal charges, the banks must turn on their own employees and provide enough details that U.S. authorities can use to go after American individuals and businesses who did not follow U.S. tax law. 

The Department of Justice allows banks who helped facilitate tax evasion to resolve potential criminal liability through participation in the Swiss Bank Program.  Four banks have now signed agreements with the DOJ.  Chief Richard Weber for the IRS-Criminal Investigation (CI) indicates that the fact these four banks have entered into agreements signals “a change in terrain for offshore banking.”  He warns: “No longer is it safe to hide money offshore and expect that it will not be discovered.  IRS CI Special Agents will continue to follow the money to find those who circumvent the offshore disclosure laws and hold them accountable.”

The Swiss Bank Program created by the Department of Justice is an attractive offer to offshore banks.  Banks that come forward voluntarily to provide information on activities related to tax evasion can avoid being prosecuted for tax crimes or for monetary transaction offenses under Titles 18, 26, and 31 of the U.S. code.  The banks will have to pay fines, but they will not be prosecuted for their activities and the fines will be more limited than the money the banks would likely need to turn over in forfeiture, restitution and other penalties if prosecuted criminally. 

The United States Senate may be the only thing standing in the way of your Swiss bank facing the maximum pressure to provide information about your personal account details to the tax enforcement division of the Department of Justice (DOJ).