Rothschild AG Enters into an Agreement to Comply with U.S. Regulations on Assets in Overseas Banks

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 some assets.

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!

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