The latest settlement brings the number of non-prosecution agreements that Swiss banks have signed with the US Department of Justice to 77.

The bank has reached a deal with the DoJ to avoid prosecution and will pay a penalty of $500,000.

Since August 2008, Leodan held a total of 44 US-related accounts, including both declared and undeclared accounts, worth a total $59.42 million in assets under management.

The Zurich-based private bank conducted a US cross-border banking business that helped some US clients open and maintain undeclared accounts in Switzerland and helped them conceal the assets and income they held in these accounts from the US Government, according to the DoJ.

Leodan opened 19 US-related accounts for 13 clients who were on the books of an external asset manager. Of these accounts, 16 were structured accounts held by non-US domiciled entities. More than 40% of the US-related accounts brought to Leodan came from the bank's relationship with this asset manager, who was later indicted for conspiring with US taxpayers to help them evade tax. Between May 2011 and October 2012, Leodan made no effort to find out the status of the criminal investigation against this person, according to the DoJ.

By signing the non-prosecution agreement, Leodan has agreed to co-operate in any related criminal or civil proceedings, and demonstrate its implementation of controls to stop any future such misconduct. Earlier this month, Union Bancaire Privée signed a similar NPA and agreed to pay a penalty of $187.767 million.

The department added that although US accountholders at Leodan who have not yet declared their accounts to the IRS may still be allowed to participate in the Internal Revenue Service's Offshore Voluntary Disclosure Programme, the price of such disclosure has increased.

At a meeting earlier this month, Leodan’s shareholders voted to wind Leodan’s banking operations.