Swiss Cabinet Adopts Framework for US Tax Evasion Deal

By John Letzing

ZURICH--The Swiss Cabinet said Wednesday it has adopted a plan for banks suspected of having helped Americans evade tax in the Alpine nation to settle past legal issues with U.S. authorities.

In a statement, the Swiss Department of Finance said the proposed framework will enable banks to deal directly with the U.S. Department of Justice to resolve outstanding issues.

The proposed deal, which will be presented to parliament later this year, is needed urgently, the department said, because "the United States is unprepared to wait any longer with the arrangement for the past for Swiss banks."

Banks wishing to participate will be able to share information with U.S. authorities including "business relationships concerning U.S. persons" and bank personnel involved in doing business with Americans, according to the statement.

No specific banks were mentioned. About a dozen Swiss banks including Credit Suisse Group AG (CSGN.VX) and Julius Baer Group AG (BAER.VX) have been under investigation for their role in helping Americans evade tax using Swiss accounts.

In 2009, the U.S. DOJ reached a deferred prosecution agreement with Swiss banking giant UBS AG (UBS). UBS admitted it had helped Americans evade tax and paid a $780 million fine.

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