The Department of Justice (DOJ) said Credit Suisse Services AG will pay more than $510 million in penalties for its part in aiding U.S. taxpayers in skirting the IRS through offshore accounts.
The more than $510 million in “penalties, restitution, forfeiture and fines” that Credit Suisse Services AG must pay are part of a guilty plea and non-prosecution agreement that the now UBS-owned bank entered on Monday for “conspiring” to hide more than $4 billion worth of assets held by some rich clients via several hundred offshore accounts, according to the DOJ.
Credit Suisse Services AG “conspired with employees, U.S. customers, and others to willfully aid U.S. customers in concealing their ownership and control of assets and funds held at the bank” during the 11.5-year period between January 2010 and July 2021, the DOJ said.
During that time, the bank allowed extremely wealthy U.S. customers to have “undeclared” offshore accounts and furnished them with “offshore private banking services” that facilitated hiding assets from the IRS and “continued failure to file FBARs,” measures that violated a previous 2014 plea agreement, according to the DOJ.
Credit Suisse’s non-prosecution agreement, the DOJ said, centers on “undeclared accounts” for American taxpayers worth over $2 billion held at Credit Suisse AG Singapore from 2014 through June 2023.
The DOJ said UBS “became aware of the accounts held at Credit Suisse AG Singapore that appeared to be undeclared U.S. accounts” after it acquired the rival bank and “voluntarily” supplied the DOJ with information on them.
Credit Suisse Services AG and owner UBS have agreed to cooperate with “ongoing investigations” and provide any further information about U.S. accounts that may arise, as part of its guilty plea and non-prosecution agreement, according to the DOJ.
In 2014, Credit Suisse became the largest bank in 20 years to plead guilty to a U.S. criminal charge, agreeing to pay a $2.5 billion fine for helping Americans evade taxes in a conspiracy that spanned decades.
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Before Monday’s settlement, the U.S. Senate Finance Committee in 2023 had found Credit Suisse violated its 2014 deal made with U.S. authorities by continuing to help with tax evasion and concealing more than $700 million from the government.
UBS said on Monday that Credit Suisse Services AG pleaded guilty to one count of conspiracy to aid and assist in the preparation of false income tax returns.
“UBS was not involved in the underlying conduct and has zero tolerance for tax evasion,” the company said. “With this resolution, UBS is pleased to have resolved another of Credit Suisse’s legacy issues, in line with UBS’s intention to resolve legacy matters at pace in a fair and balanced way and in the interest of all its stakeholders.”
UBS announced it would take over Credit Suisse in March 2023. That deal came about as Credit Suisse was, at the time, facing concerns it could potentially collapse.
UBS completed its acquisition of the rival bank later that year.
Reuters contributed to this report.
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