Vontobel has agreed to pay a one-off sum of approximately €13.3m ($16.25m) to resolve allegations that it helped rich Germans evade taxes with hidden offshore accounts.
The Swiss private bank reached the deal with the authorities in the German state of North Rhine-Westphalia.
The pact related to untaxed assets held by German clients applies to all German states, the 124-year-old Zurich-based bank said in its statement.
“Vontobel’s main concern from the outset was to ensure clarity and legal security, particularly in the interests of its staff,” the statement read .
Vontobel noted that the settlement completes its efforts to ‘rectify past mistakes.’
The bank also noted that this penalty won’t affect its results this year as it had taken provisions for legal and litigation risks in this matter in last year result.