Criminal FBAR Enforcement 2023–25: Penalties And Compliance

From 2023 through mid-2025, FBAR (FinCEN Form 114) compliance evolved into a criminal law flashpoint. A series of high-stakes prosecution cases, including extradition, jail time, and the first-ever institutional criminal plea by a global bank, signals a new era in U.S. cross-border FBAR enforcement.

High-net-worth individuals, corporate officers, and financial institutions must take note: the risk is real, and penalties are escalating. This post covers five major cases, patterns in enforcement, and what compliance and advisory professionals should be doing today.

Five Noteworthy Criminal FBAR Cases

United States v. Lucia Andrea Gatta Sentence: 36 months in prison, one year supervised release, and a $50,000 fine. Allegations: U.S. naturalized citizen failed to file tax returns (2011–2013), concealed Swiss bank accounts, and lied on her immigration application to hide the misconduct. She fled to Italy and was extradited 18 months later.
U.S. v. Mark Anthony Gyetvay Sentence: 86 months in prison, over $4 million restitution, $350,000 fine, and three years’ supervised release. Details: Former CFO of Novatek concealed $93 million in offshore Swiss accounts between 2005–2015, failed to file FBARs and tax returns, and falsified Streamlined FBAR filing compliance submissions, and was convicted after a jury trial.
U.S. v. Chunsheng “Jay” Huang (San José, CA) Status: Indicted in Nov 2022 (unsealed Oct 2023); currently at large. Charges: Filed false tax returns and failed to report foreign bank accounts (2019–2020) via an ICBC account held in a relative’s name. Exposure: Up to 10 years and $500,000 fine just for willful FBAR violations penalties.
U.S. v. Foster (Fa) Dai (Alabama/PRC dual citizen) Status: Indicted Sept 10, 2024 (unsealed Jan 2025). Allegations: Former Auburn University professor and PRC corporate executive failed to report income from 2018–2020 received via China Merchants Bank and ICBC accounts, and failed to file corresponding FBARs. Potential Penalties: Up to 5 years in prison, $250,000 fine per FBAR count.
Credit Suisse Services AG Outcome: On May 5, 2025, pleaded guilty to conspiring to conceal over $4 billion in assets across more than 475 U.S.-linked offshore accounts. Paid $371.9M in fines and $138.7M in penalties under a separate NPA—with total sanctions exceeding $510M. Significance: The first-ever IRS FBAR criminal investigation resulting in a bank-level guilty plea, proving institutions are now in scope. This opened the door to scrutiny of U.S.-based institutional operations.

Enforcement Patterns Emerging (2023–2025)

Prison Time is Real – Multi-year prison sentences prove that FBAR penalties 2025 are no longer just about fines.
High International Reach – Extraditions (Gatta), fugitives abroad (Huang), and cross-border FBAR enforcement reflect global coordination.
Institutions Are in Scope – Credit Suisse’s guilty plea marks a watershed. This means institutions facilitating FBAR evasion can now face criminal penalties.
Streamlined Must Be Honest – Misusing the FBAR voluntary disclosure practice or Streamlined filings can backfire, as seen in Gyetvay’s case.
Relatives & Signatories Still Count – Using relatives’ accounts (Huang) demonstrates that indirect ownership or proxy accounts still trigger reporting.

What Advisors and High-Net-Worth Clients Should Do Now

Do not self-assess Streamlined eligibility without a documented good-faith analysis.
Ensure all U.S. indicia trigger a compliance review — including any foreign account with a U.S. signatory or issuer.
Maintain a written audit trail of: Foreign-account ownership checks
Willfulness warnings given to clients
FBAR filings or non‐filing rationale
Train fiduciaries, executives, and family members on FBAR obligations. Signatories or corporate officers may be prosecuted, even if they’re not the primary account holder.
Consider pre-clearance or voluntary disclosure programs, but only after consulting experienced counsel in IRS FBAR criminal investigation matters.

Final Thoughts & Legal Disclaimers

FBAR violations are no longer viewed as “civil, minor mistakes.” They now fall squarely under criminal FBAR enforcement, with real prison time and millions in penalties. The government, through IRS-Criminal Investigation and DOJ, now pursues willful non-compliance aggressively, with multi-year prison time not uncommon. Even Bank-led operations are in the crosshairs.

While the Bittner v. United States FBAR ruling 2023 clarified limits on civil penalties for non-willful errors, it offers no shield against criminal cases when willfulness is proven.

Moreover, credentialed advisors should review willfulness indicators such as:

Use of relatives or proxies for account holding
Adherence to U.S. indicia collection (passport screenings, W-8/W-9 forms, etc.)

Ultimately, the takeaway is clear: act early, document carefully, and seek professional legal guidance before making disclosures or attempting compliance under the FBAR voluntary disclosure practice.

Don’t risk costly penalties or criminal exposure. We at VerniTax specialize in defending clients against IRS FBAR criminal investigations, handling voluntary disclosures, and navigating complex cross-border compliance.

As always, this blog is intended for informational purposes and should not be construed as legal advice. Consult qualified tax or legal counsel before making self-corrections, filing under the Streamlined program, or disclosing potentially criminal non‐compliance.