Non-prosecution agreement, assisting US taxpayers to maintain undeclared accounts (2001-2013)
The US Attorney for the Southern District of New York announced a non-prosecution agreement with The Bank of N.T. Butterfield & Son Limited, the Bermuda parent, for helping US taxpayer clients open and maintain undeclared foreign accounts from 2001 through 2013. The bank paid USD 5.6 million (USD 4.896 million forfeiture and USD 704,000 restitution) and produced about 386 client files. The release describes funds moved between US and Cayman Islands based accounts; the Cayman subsidiary is not named as a party. The parent's 2025 annual report states the three-year agreement concluded in July 2024.
Shown for context only: the agreement was entered into by the Bermuda parent; the release refers to money moved between US and Cayman Islands based accounts.
Butterfield admits to helping its clients conceal their ownership of foreign bank accounts.
Per the release, the bank implemented remedial measures in 2013, produced about 386 client files, agreed to cooperate for at least three years and not to contest a related civil forfeiture action.
