On June 3, 2015 The Department of Justice and Rothschild Bank AG, entered
into a “deferred prosecution agreement.” Rothschild Bank AG
must also comply with any investigations for criminal or civil proceedings
if it involves a U.S.-based bank account. The bank will also be forced
to pay a penalty fine of $11.5 million.
Rothschild AG entered into the deferred prosecution agreement, accepting
the bargain so that they would not be held liable for
tax violations. Allegedly, the bank had been enabling many Americans hide
Narrowing the Gap on Using Overseas Banks
There are many Americans who use Swiss banks to store a portion of or even
all of their money. Some of these individuals do this because these banks
are highly secure, safe, and private. There is some comfort knowing that
one has a store of money to fall back on in the event that some event,
such as a lawsuit, bankruptcy, or divorce wipes most of the money away.
Then, there are others who choose to keep money in Swiss banks to avoid
being taxed and hide assets, and shield themselves from the possibility
of criminal culpability. The Department of Justice has named Rothschild
AG, among several other overseas banks, as responsible for enabling tax evasion.
Under the Swiss Bank program, banks must comply with the following regulations:
- Must provide full disclosure of all international and cross-border activity
- All fines must be paid off where appropriate
- Must provide information when required for investigation, especially for
accounts where U.S. tax payers have either direct or indirect interest
- Must provide information about funds in secret accounts transferred from other
- Must close the accounts of anyone who is in violation of the U.S.
After many other Swiss banks either closed down or fell under criminal
investigation for other tax violations, many turned to Rothschild AG.
In 2013, The Swiss Bank program was created to ensure that these banks
would comply with American tax and allow investigations if there is reason
to believe that a tax violation had occurred.
Have Tax Questions? Contact Us!
Our tax lawyers at Castro & Co. serve clients internationally, and have several offices throughout the
U.S., including Washington DC, Dallas, Orlando, and Miami. We are prepared to
advise you through any tax matter, to help you make the right decisions, protect your assets, and prevent
any potential liabilities. We are also ready to address any concerns you
might have about Rothschild AG Bank, Swiss Bank programs, other related issues.
Call us today at (888) 595-5088 to discuss your tax matter!