ABOUT 80 of the 106 Swiss banks that signed up for a deal with U.S. tax authorities could be fined less than they had feared for their role in helping wealthy Americans cheat on their taxes, but must widen their cooperation, a Swiss newspaper reported.

    The banks, which include Geneva-based Lombard Odier and Zurich firm EFG International, came forward under a program brokered by the Swiss and U.S. governments, after criminal investigations of roughly a dozen Swiss banks including Credit Suisse in the United States.

    So-called second category banks will escape prosecution if they detail their wrong-doing with U.S. clients and pay fines under the program agreed last year.

    But they must cooperate more fully with U.S. prosecutors before reaching non-prosecution agreements, Finanz und Wirtschaft reported Saturday, citing unnamed legal sources.

    Since a Dec. 31 deadline to enter the program, the banks have delivered information on how many American clients they have served in recent months, and clarified with U.S. officials what the penalties for harboring funds in offshore accounts will be.

    In May, Zurich-based Credit Suisse became the largest bank in decades to plead guilty to a U.S. criminal charge and agreed to pay more than US$2.5 billion in penalties for similar offences.(SD-Agencies)