ZURICH Feb 24 U.S. prosecutors are widening
their probe of how Swiss banks helped wealthy Americans avoid
taxes to look at insurers as well, the Wall Street Journal
reported on Monday, citing unnamed sources.
Zurich-based Swiss Life in December returned funds
to hundreds of American clients who had invested in wrappers
linked to bank accounts at Bank Frey, a Swiss private bank,
according to the WSJ report.
A spokeswoman for Swiss Life said the insurer had not been
contacted by U.S. officials.
Frey, a private bank, is one of 14 Swiss firms under formal
U.S. investigation for its dealings with U.S. clients and
untaxed assets. It said late last year it would close because
the probe's costs eclipse the bank's financial strength.
Insurers in Switzerland have been preparing for months for
U.S. officials to investigate products known as insurance
wrappers - life insurance policies into which the very wealthy
place stocks, private equity holdings and other bankable assets,
allowing them to lower their tax rate.
Returning client funds would represent a stepping up of
measures from last year, when insurers were trying to ensure
that American clients who bought the insurance products could
show that they had paid taxes due to the United States, industry
insiders had told Reuters.
The insurance investigations have taken a backseat to a
Swiss/U.S. government-brokered scheme to extract Swiss banks
from prosecution for aiding tax evasion through hidden offshore
The U.S. Justice Department said recently it had received
106 requests from Swiss entities to participate in a settlement
programme aimed at resolving past tax crimes for Swiss banks,
but that not all the entities might be banks and would thus not