The department disclosed the number of offshore banks under investigation on its website when it listed its progress to date in dealing with such banks. However, names of the eight banks were not revealed.
The Justice Department revealed that it has initiated about 150 grand jury investigations of offshore banking clients. Charges have been brought in 30 cases, resulting in two convictions and 24 guilty pleas. Four cases await trial.
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In its disclosure the department said its enforcement efforts have "dealt fabled Swiss bank secrecy a devastating blow", adding that it "should yield information on thousands of additional US offshore account holders who have undisclosed accounts at UBS and other banks".
According to reports, prosecutors also are investigating several smaller cantonal banks in Switzerland. US authorities allege the smaller banks took over providing account services to suspected US tax evaders after the Justice Department began cracking down on UBS and other banks.
In 2009, the Swiss government stepped in and made a deal with the US to shield its banking-secrecy laws and protect UBS from further legal fallout.
As per the deal, UBS agreed to pay US$780 million to avoid prosecution, and gave the US data on more than 250 accounts. It later also handed over data on another 4,450 accounts.
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By GlobalDataA long tradition of bank secrecy has helped Switzerland build up a US$2 trillion offshore financial industry.
Apart from the US, many other countries are making attempts to crack down on tax evaders with undeclared funds in Swiss banks.
Switzerland recently also signed tax deals with a several countries, including the UK and Germany, which besides the US have been among the most vocal critics of Switzerland’s banking-secrecy laws that have helped the country attract trillions of dollars in funds.
Apart from Switzerland, the US Justice Department’s criminal tax division is also scrutinizing three of Israel’s largest banks over suspicions their Swiss outposts helped Americans evade taxes, that’s according to an exclusive Reuters report.
The Justice Department is reportedly focused on Bank Hapoalim, Bank Leumi le-Israel BM and Mizrahi-Tefahot, the report says.
