Swiss Life speaking with US authorities about american clients

Swiss Life referred on Thursday it has been contacted by the U.S. Department of Justice regarding its cross-border business with American clients.

The firm said its business with US clients via its Swiss Life Liechtenstein and Swiss Life Singapore units amounts to approximately 250 million Swiss francs ($260 million).

The DOJ inquiry concerns Swiss Life’s insurance wrapper business, life insurance policies into which the very wealthy can place stocks, private equity holdings and other bankable assets, exploiting tax benefits on investment income held in such policies.

It said all insurance contracts had been reported under US anti-tax evasion laws that require reporting of assets owned by US citizens.

Swiss Life said portfolio of business with US clients had previously totalled as much as 1 billion Swiss francs.

"Swiss Life will use the opportunity for dialogue and explain its past cross-border business in cooperation with the US authorities," it said, without providing any additional information about the nature of the contact from the Department of Justice.

“All insurance contracts have been categorized and been reported pursuant to the FATCA legislation,” Swiss Life said, referring to the 2010 anti-tax evasion law.

Swiss Life is particularly active in retirement savings and asset management.

In recent years, the United States has tightened its crackdown on tax evasion by requiring foreign financial institutions to report assets held by US citizens.