* Five banks seek government permission to send data-sources
* Account transfers represent last piece of data puzzle
* Data move still subject to legal appeal by third parties
By Katharina Bart
ZURICH, July 12 (Reuters) - Credit Suisse andJulius Baer are among five Swiss banks which havesought government approval to hand data to U.S. prosecutors in abid to reach settlements in a long-running tax dispute, foursources familiar with the matter said.
The requests represent a push towards sealing a final dealfor some of the dozen Swiss banks in the crosshairs of U.S.prosecutors for helping wealthy Americans evade taxes throughhidden accounts.
Some of the five, which also include local government-backedbanks Zuercher Kantonalbank and Basler Kantonalbank andthe Swiss arm of Britain's HSBC, expect the governmentto approve their request in the coming days, two sources said.
The Swiss government, which has been trying to reach a dealfor the banks for three years, declined to comment on Friday.
The banks under investigation have long been keen tocooperate to avoid indictment, which put Swiss private bankWegelin out of business this year. But they have been preventedfrom doing so in full by strict secrecy laws, which have helpedmake Switzerland the world's biggest offshore financial centre.
"We don't comment on details of the process, but do continueto cooperate closely with the U.S. authorities," said aspokesman for HSBC's private bank. He didn't comment further.
The remaining four banks didn't comment.
The five banks have already handed over data on their U.S.dealings as well as staff involved in the offshore business, butthe U.S. authorities still want information on where clientsclosing their accounts moved their money.
The Swiss government paved the way for the banks to complylast week, saying it would grant them individual permission todeliver exit lists, information which will help investigatorspursue tax evaders and their bankers.
Swiss Finance Minister Eveline Widmer-Schlumpf said lastweek the move should allow the dozen banks to settle.
Former Credit Suisse private banking head Walter Berchtoldsaid the bank could now move forward after that decision.
"Whether Credit Suisse is the first or last to settle, Idon't know," Berchtold, who left the Swiss bank after more than30 years last week, told Sunday's Sonntagsblick, a Swiss weekly.
Others targeted by U.S. investigators include privately-heldPictet, Liechtenstein Landesbank's Swiss arm and BankFrey, but it was not immediately clear if or when they mightseek Swiss government approval to deliver data.
While permission to send data on their U.S. dealings wouldrepresent a step forward, it doesn't necessarily mean the bankswill quickly reach settlements to avert criminal prosecution andsettle the matter definitively, two sources said.
Definitive settlements are subject to negotiation over fineswhich could total $10 billion for the entire Swiss bankingindustry.
Even after they gain government approval, the five bankscannot send data to the United States immediately because thetransfer is subject to potential legal appeals.
HSBC Holdings (HSBA)