A Swiss asset management firm has now complied to pay USD $5 million to the US authorities. This is in return for immunity from prosecution for helping US customers to manage undeclared foreign bank accounts from the years 2001 to 2010.
With regards to the settlement, the Swiss firm will renounce USD $4.32 million of fees and also pay USD $680,000 which relates to the unpaid taxes from its clients.
Essentially, Prime Partners supervised USD $270 million of assets for American taxpayers in 2008, and ended 2016 with USD $2.6 billion worth of assets under management, according to the settlement papers.
According to the Acting U.S. Attorney in Manhattan, the firm encouraged their customers to use prepaid debit cards and pay phones to avoid exposure of their tax evasion. Prime Partners also set up sham entities to hide under the radar.
The favourable penalty was initiated on Prime Partners exceptional teamwork, which includes its voluntary management of an estimated 175 client files for non-compliant US customers.