Swiss bank to pay $123 million for aiding tax evasion

  • Banque Pictet settles with U.S. over hiding $5.6 billion from IRS
  • The bank will pay $122.9 million in penalties
  • 1,637 secret accounts were used to hide the money
  • The IRS lost $50.6 million in taxes
  • Banque Pictet will pay $52 million in lieu of profits
  • The bank will also pay $32 million in restitution and a $39 million penalty
  • Banque Pictet manages around $168 billion in assets
  • Various methods were used to help customers hide their money
  • U.S. authorities have been cracking down on Swiss banks

Geneva-based Banque Pictet et Cie has reached a settlement with the U.S. Department of Justice over allegations of helping American customers hide $5.6 billion from the IRS. The bank will pay $122.9 million in penalties for using 1,637 secret accounts to facilitate tax evasion. The IRS lost $50.6 million in taxes as a result. In addition, Banque Pictet will pay $52 million in lieu of profits, $32 million in restitution to the IRS, and a $39 million penalty. The bank manages around $168 billion in assets and used various methods to assist customers in hiding their money. U.S. authorities have been cracking down on Swiss banks involved in aiding tax evasion.

Public Companies:
Private Companies: Banque Pictet et Cie, Salon, Pictet Group
Key People: Jim Lee (IRS Criminal Investigation Chief)

Factuality Level: 7
Justification: The article provides information about Banque Pictet et Cie reaching a settlement with the U.S. Department of Justice regarding its role in helping American customers hide money from the IRS. It includes details about the penalties and restitution that the bank will pay. The article also mentions the methods used by the bank to assist customers in hiding their money. However, the article lacks specific details about the investigation and the evidence against the bank. It also does not provide any perspectives or statements from the bank or the U.S. Department of Justice.

Noise Level: 3
Justification: The article provides relevant information about Banque Pictet et Cie reaching a settlement with the U.S. Department of Justice for helping American customers hide money from the IRS. It includes details about the penalties and the methods used by the bank. However, the article lacks in-depth analysis, scientific rigor, and actionable insights.

Financial Relevance: Yes
Financial Markets Impacted: The article pertains to the settlement reached between Banque Pictet et Cie and the U.S. Department of Justice regarding the bank’s role in helping American customers hide billions of dollars from the IRS. This settlement may impact the financial reputation and operations of Banque Pictet et Cie.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses a financial event, specifically the settlement between Banque Pictet et Cie and the U.S. Department of Justice. While there is no extreme event mentioned, the financial relevance is evident as it involves a significant penalty and the uncovering of hidden accounts.

Reported publicly: www.marketwatch.com