Credit Suisse Aided Rich Clients’ Tax Evasion in Deal Breach

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A two-year investigation by the US Senate Finance Committee found that embattled Swiss bank Credit Suisse violated a 2014 plea deal reached with the US Department of Justice (DOJ). Lawmakers on Wednesday said the bank helped ultra-wealthy American clients avoid taxes by hiding more than $700 million in undeclared accounts.

The Committee also found that approximately $100 million belonging to a single family of US-Latin American citizens was hidden in secret offshore accounts for nearly a decade without being disclosed to US tax authorities. It described this as “an ongoing potentially criminal conspiracy.” In addition, the Committee believes that the bank helped a US businessman hide more than $220 million in foreign accounts from the US Internal Revenue Service, Reuters reports

In 2014, Credit Suisse paid a reduced fine to the DOJ after pleading guilty to assisting clients’ tax evasion and agreeing to report undeclared accounts and other information to US authorities. However, the Committee said that Credit Suisse only informed it days ago about 23 accounts containing more than 20 million dollars not slowed down for taxation.

Responding to the development, Credit Suisse said Reuters it does not arrange tax evasion and cooperated with officials in the United States. The Swiss bank also told the Associate Press that the said avoidance were lingering issues that were dealt with long ago.

Credit Suisse Faces New Headwind

Earlier this month, rival bank UBS agreed to buy Credit Suisse, whose financial problems have been exacerbated recently by US bank failures, for CHF 3 billion in a deal expected to close by the end of 2023. The Senate Finance Committee report of the United States appeared on the same. day UBS announced that it is recalling Sergio P. Ermotti, its former CEO, to oversee the complex acquisition of Credit Suisse, the second largest Swiss lender.

It remains unclear whether the US Committee’s new report will impact USB acquisition procedures. The new U.S. report is Credit Suisse’s latest run-in with U.S. authorities after it paid $495 million in October last year to resolve problems with its mortgage securities business operated in the build-up to the 2008 financial crisis.

The bank recently faced criminal proceedings in Switzerland for allegedly allowing a Bulgarian drug trafficker to launder ill-gotten money. The bank was found guilty in the case, which was the first criminal trial of a Swiss bank.

The merger of UBS and Credit Suisse is expected to create a Swiss megabank with more than $5 trillion in total invested assets.

OpenFin Adds Dow Jones; Quantile Taps SwapAgent FX, read today’s news.

A two-year investigation by the US Senate Finance Committee found that embattled Swiss bank Credit Suisse violated a 2014 plea deal reached with the US Department of Justice (DOJ). Lawmakers on Wednesday said the bank helped ultra-wealthy American clients avoid taxes by hiding more than $700 million in undeclared accounts.

The Committee also found that approximately $100 million belonging to a single family of US-Latin American citizens was hidden in secret offshore accounts for nearly a decade without being disclosed to US tax authorities. It described this as “an ongoing potentially criminal conspiracy.” In addition, the Committee believes that the bank helped a US businessman hide more than $220 million in foreign accounts from the US Internal Revenue Service, Reuters reports

In 2014, Credit Suisse paid a reduced fine to the DOJ after pleading guilty to assisting clients’ tax evasion and agreeing to report undeclared accounts and other information to US authorities. However, the Committee said that Credit Suisse only informed it days ago about 23 accounts containing more than 20 million dollars not slowed down for taxation.

Responding to the development, Credit Suisse said Reuters it does not arrange tax evasion and cooperated with officials in the United States. The Swiss bank also told the Associate Press that the said avoidance were lingering issues that were dealt with long ago.

Credit Suisse Faces New Headwind

Earlier this month, rival bank UBS agreed to buy Credit Suisse, whose financial problems have been exacerbated recently by US bank failures, for CHF 3 billion in a deal expected to close by the end of 2023. The Senate Finance Committee report of the United States appeared on the same. day UBS announced that it is recalling Sergio P. Ermotti, its former CEO, to oversee the complex acquisition of Credit Suisse, the second largest Swiss lender.

It remains unclear whether the US Committee’s new report will impact USB acquisition procedures. The new U.S. report is Credit Suisse’s latest run-in with U.S. authorities after it paid $495 million in October last year to resolve problems with its mortgage securities business operated in the build-up to the 2008 financial crisis.

The bank recently faced criminal proceedings in Switzerland for allegedly allowing a Bulgarian drug trafficker to launder ill-gotten money. The bank was found guilty in the case, which was the first criminal trial of a Swiss bank.

The merger of UBS and Credit Suisse is expected to create a Swiss megabank with more than $5 trillion in total invested assets.

OpenFin Adds Dow Jones; Quantile Taps SwapAgent FX, read today’s news.

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