Swiss Bank settles tax matter with US

Zürcher Kantonalbank (ZKB) has agreed to pay the US Department of Justice (DOJ) $98.5m as part of a Deferred Prosecution Agreement after concluding the investigation into the bank’s legacy business with US clients.

The bank expects that one current and one now retired employee, who were indicted in 2012 in connection with the US tax matter, will soon also be able to conclude their legal cases.

The bank’s payment to the US authorities will have no negative impact on the bank’s 2018 financial results, its capital strength, or on the distribution of profits to the canton and municipalities. It has also successively adjusted its cross-border wealth management business since 2009. It is committed to a strict tax-compliant business policy, and in terms of geographic coverage focuses on selected core markets with an emphasis on Europe.

Dr. Jörg Müller-Ganz, chairman of the Board of Directors: “We are relieved that after seven years, we were able to conclude the investigation following an objective dialogue with the US authorities. The solution that has now been reached marks the end of this matter and removes any related uncertainties. We look forward to forging ahead with the positive development of our bank. With its solid capitalization and strong position in the market, Zürcher Kantonalbank is well positioned for future success.”

ABOUT THE AUTHOR
Ridhima Sharma
Ridhima Sharma speaks German and is DACH Correspondent for InvestmentEurope. She has more than 8 years of experience in the media industry. Before joining us, she was working in India and covering automotive and lifestyle sectors. Over the years many of her stories have been published in various magazines across India.

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