Swiss-based Privatbank IHAG Zurich has reached resolution with the US Department of Justice (DoJ) over the tax evasion cases under the department’s Swiss bank programme.

The private bank has agreed to pay a penalty of $7.4m to avoid prosecution over allegations that it helped wealthy Americans evade taxes.

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Under the terms of the non-prosecution deal, IHAG agreed to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to prevent misconduct involving undeclared US accounts and pay penalties.

The DoJ said that IHAG maintained a total of 182 US related accounts with an aggregate value of $791m since 1 August 2008.

IHAG helped certain recalcitrant US persons in concealing undisclosed accounts by moving the funds to another jurisdiction and returning the funds to IHAG in a different name to allow recalcitrant accountholders to continue to maintain undeclared accounts at IHAG.

The bank also assisted clients in establishing foundations used to hold their assets at IHAG.

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The department added that IHAG offered a variety of traditional Swiss banking services inclusing hold mail, as well as accounts opened in the name of pseudonyms that assisted US taxpayers in concealing assets and income from the IRS.

Justice Department tax division acting assistant attorney general Caroline Ciraolo said: "Through the information provided by IHAG and other Swiss banks in the Program, the department has unraveled the various schemes and identified the foreign jurisdictions used by U.S. taxpayers to conceal their foreign accounts."