Swiss banks holding US citizens' funds that are not declared to American tax authorities are set to have to pay a massive fine, under a deal between Switzerland and Washington, a newspaper reported on Wednesday.
The Swiss daily Neue Zuercher Zeitung, quoting sources familiar with the talks, said that the fine could reach 40 percent of the funds in question.
Swiss authorities have been tightlipped about the content of the accord, which is still being finalised, but Finance Minister Eveline Widmer Schlumpf said Saturday that the conclusion of the negotiations was in sight.
US authorities have repeatedly accused Swiss banks of complicity in tax evasion, because they hold deposits worth billions of dollars belonging to American citizens that have not been declared to the tax authorities.
Starting with accusations against a dozen banks, the dispute ballooned and Switzerland launched talks to try to reach an overarching settlement and provide legal closure for its financial sector.
"The banks won't get this for free. It's clear that it won't be a pleasant solution," Widmer Schlumpf said Saturday, without giving details.
Swiss media have reported that under a compromise hammered out by negotiators, the 300 banks in Switzerland would be classed according to their level of alleged complicity in tax evasion.