Swiss Bank Program: Non Prosecution Agreements Implementation & Beyond

The United States Department of Justice’s Swiss Bank Program undoubtedly accounts for one of the most ­ambitious global foreign enforcement of U.S. tax laws. The resulting Non-Prosecution Agreements – signed by a record of 80 banks – were reached after long, demanding internal investigations and cooperation efforts with U.S. authorities. But, these NPAs are not the end. To the contrary, they carry a vast number of affirmative, cooperation, and self-reporting obligations spanning over their four-year duration, and potentially beyond. Even more critical, the Swiss Bank Program and resulting NPAs offer virtual jurisdiction to U.S. authorities to enforce other U.S. laws. In this context, the DOJ is to some extent reshaping Switzerland’s compliance landscape by imposing proactivity. This article explores the legal and practical challenges participating Swiss banks are facing as they implement their NPAs’ obligations, and offers practical solutions. The authors argue that the Swiss Bank…