A «hardship fund» for Swiss bankers has found increasing demand as Switzerland's banks near the end of a massive decade-long crackdown by U.S. prosecutors. 

Swiss banks have delivered reams of documents on their own staff to American prosecutors as part of the 2013 settlement of a crackdown on tax evasion and fraud. The move has left rank and file employees in a limbo situation, uncertain if they are culpable to U.S. officials.

Several Swiss bank staff advocacy groups launched a «hardship fund» to help employees finding themselves in dire financial straits. Up until now, several dozen have received financial aid, the lead lobby group, Schweizerischer Bankpersonalverband or SBPV, told finews.asia. Initially, bank staff were uncertain of their fate; several cases had been clarified following advice arranged by the lobby, SBPV head Peter-René Wyder said.

Still on the Hook

The fund will exist until all Swiss bank still on the hook with U.S. prosecutors have settled their respective criminal investigations: those include Basler Kantonalbank, Liechtensteinische Landesbank's Swiss arm which is being wound down, as well as privately-held Pictet and Rahn and Bodmer.

The situation around HSBC's Swiss bank as well as Israeli firms Hapoalim and Mizrahi remains unclear. All «hardship cases» were accepted, Wyder said; the lobby has committed to supporting personal difficulties, not legal expenses. 

Personal Data Shipped

Any current or former Swiss banking employees who have had their data sent to the U.S. as a result of a 2012 government decision to do so or the 2013 settlement can apply for emergency funding. Applicants who can show financial, personal, or familial hardship as a result of their names being handed over to U.S. officials are likely to get financial aid.

The funding isn't lavish: payments are capped at 10,000 Swiss francs ($10,300), but in cases of exceptional hardship, bankers can submit a second application. The lobby defines hardship along the following criteria:

Personal/family difficulties 

  • Problems maintaining contact to relatives 
  • Difficulties meeting obligations for dependents 
  • Illness (regardless whether the applicant is able to pursue employment or not)

Financial difficulties

  • Massive reduction of income (> 20 percent)
  • Difficulty meeting ongoing financial obligations such as mortgage, even with a minor reduction in income 
  • Additional expenses as a result of data transfer and/or change in employment (including longer commute, continuing education, higher childcare expenses, medical costs)

Economic difficulties

  • Unemployment
  • New employment at lower salary