PARAGRAPH COMPLETION THE FOLLOWING FRAGMENT HAS BEEN REMOVED FROM THE GIVEN PARAGRAPH. IDENTIFY THE BLANK WHERE IT WILL LOGICALLY FIT. Fearful that other banks could suffer the same fate as Wegelin, a venerable private bank that was indicted in New York in 2012 and put out of business, the Swiss government has been seeking an agreement with America that would allow the industry to pay its way out of trouble in one go. ___1___ Instead, it has had to make do with one covering banks that are not already under investigation, which excludes some of the country’s biggest institutions.___2___ Of Switzerland’s 300 banks, 285 will be able to avoid prosecution if they provide certain information about American clients and their advisers, and pay penalties of 20-50% of the clients’ undeclared account balances, depending on when the account was opened and other factors. Banks that persuade clients to make disclosures before the programme starts will get reduced fines.___3___ Banks will not have to take part but the legal risks are daunting for those that don’t, even if they hold little undeclared American money. ___4___Those with no foreign clients will have to produce independent reports proving they have nothing to hide if they want a clean bill of health. Missing Link: The deal is cleverly structured.
Posted on: Sat, 14 Sep 2013 11:24:01 +0000
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