Many Swiss banks are saying they will freeze accounts of their American clients unless they prove that they have complied with U.S. tax laws. This comes just before the deadline in July where banks in a program set up by the Department of Justice must show that their clients confirm to U.S. tax requirements.
The United States has been after banks for the past few years for helping U.S. citizens to dodge taxes. UBS paid a $780 million fine after admitting it helped thousands evade taxes. In May Credit Suisse paid a $2.6 Billion fine for conspiring to help clients evade taxes.
The DoJ programme allows Swiss banks, consisting of some 300 banks, to hand over information about their activities with US clients and where there are undeclared accounts, by paying stiff fines. Over 100 Swiss banks have agreed to cooperate.
Jeffrey Newman represents whistleblowers.