SWISS banks will be allowed to cooperate with US authorities under a government plan agreed yesterday aimed at saving the industry from criminal charges of helping Americans evade tax.

US authorities want Swiss banks to pay fines potentially totaling US$10 billion and hand over the names of Americans they suspect of using secret accounts to evade tax, but strict secrecy laws stop the banks from complying.

The Swiss government said it had agreed the parameters under which banks could cooperate and said they could apply for individual permission to allow them to settle tax investigations, though they would not be allowed to hand over client names. But banks will be allowed to reveal information that would help US authorities identify wealthy clients who are evading taxes, without naming them.