Banker’s Betrayal: Privatbank Von Graffenried AG Facilitated U.S. Tax Evasion

March 24, 2026 – A shocking revelation has come to light in the world of international banking. Privatbank Von Graffenried AG, a Swiss bank, has been found to have facilitated U.S. tax evasion through its dealings with U.S. taxpayers. According to sources, the bank, founded in 1992 and based in Bern, Switzerland, assisted U.S. taxpayer-clients in evading their U.S. tax obligations, filing false federal tax returns with the Internal Revenue Service (IRS) and otherwise hiding assets maintained overseas from the IRS.

Starting in at least July 1998, Von Graffenried, through certain practices, assisted U.S. taxpayer-clients in evading their U.S. tax obligations. The bank offered a variety of traditional Swiss banking services that it knew could assist, and that did assist, U.S. clients in the concealment of assets and income from the IRS. For example, Von Graffenried would hold all mail correspondence, including periodic statements and written communications for client review, thereby keeping documents reflecting the existence of the accounts outside the United States.

In late 2008 and early 2009, Von Graffenried accepted accounts from two European nationals residing in the United States who had been forced to leave UBS and Credit Suisse, respectively. At the time it accepted the accounts, Von Graffenried knew that UBS was the target of an investigation by the authorities. Senior management at Von Graffenried approved the opening of these accounts.

The Swiss Bank Program, announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Banks eligible to enter the program were required to advise the authorities by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.

Under the program, banks are required to make a complete disclosure of their cross-border activities, provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest, cooperate in treaty requests for account information, provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed, agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations, and pay appropriate penalties.

According to the terms of the non-prosecution agreement signed today, Von Graffenried agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts, and pay penalties in return for the authorities’ agreement not to prosecute Von Graffenried for tax-related criminal offenses. Von Graffenried also has provided certain account information related to U.S. taxpayers that will enable the government to make requests under the 1996 Convention between the United States of America and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income for, among other things, the identities of U.S. accountholders.

Von Graffenried’s actions are a stark reminder of the consequences of facilitating tax evasion. The bank’s willingness to cooperate with the authorities is a positive step, but the damage has already been done. The case serves as a warning to other institutions that facilitating tax evasion will not be tolerated.