Financial institution pays $5.6M in US non-prosecution deal

Cayman News Service


Butterfield Bank, George Town

(CNS): Butterfield Bank has reached a non-prosecution financial deal with the United States Department of Justice to put to bed a long running criminal case regarding past allegations of facilitating tax evasion in the Cayman Islands. The bank has agreed to pay US$5.6 million in taxes and forfeiture to address the allegations relating to the bank’s US clients dating back to 2001 through to 2013, when the issues were reported.

In a press release from the US Attorney’s Office Southern District of New York, prosecutors said the non-prosecution agreement was as a result of the “extraordinary cooperation” from the bank, which had handed over 386 files relating to non-compliant US taxpayer-clients. Attorney Audrey Strauss said the bank had admitted helping its clients conceal their ownership of foreign bank accounts to avoid their US tax obligations.

“Butterfield allowed its US clients to use sham entities that assisted those US…