A Credit Suisse unit has pleaded guilty to US charges of helping ultra-wealthy Americans evade taxes and will pay more than US$510 million in fines and other penalties, the US Department of Justice said on Monday (May 5).
Credit Suisse Services pleaded guilty and was sentenced on Monday for conspiring to hide more than US$4 billion from the US Internal Revenue Service in at least 475 offshore accounts, it added.
It has agreed to pay a total of US$510,608,909 in penalties, restitution, forfeiture and fines, said the department in a press release.
The guilty plea stems from the Swiss bank maintaining accounts in Singapore on behalf of US taxpayers who were using offshore accounts to evade US taxes and reporting requirements, according to the release.
“Among other fraudulent acts, bankers at Credit Suisse falsified records, processed fictitious donation paperwork, and serviced more than US$1 billion in accounts without documentation of tax compliance,” the Justice Department added.
“In doing so, Credit Suisse AG committed new crimes and breached its May 2014 plea agreement with the United States.”
In 2014, Credit Suisse became the largest bank in 20 years to plead guilty to a US criminal charge, agreeing to pay a US$2.5 billion fine for helping Americans evade taxes in a conspiracy that spanned decades.
Prior to Monday’s settlement, the US Senate Finance Committee in 2023 had found Credit Suisse violated its 2014 deal made with US authorities by continuing to help with the tax evasion and concealing more than US$700 million from the government.
UBS said on Monday that Credit Suisse Services pleaded guilty to one count of conspiracy to aid and assist in the preparation of false income tax returns.
UBS said it was not involved in the underlying conduct, which began before its acquisition of Credit Suisse in 2023.
The Swiss lender had accounted for the issue as a contingent liability when acquiring Credit Suisse, and expects this to be partially released as a credit in the second quarter.
Simultaneously, the bank also expects to record a charge related to the payment in the quarter.
In addition to the guilty plea and fine, Credit Suisse Services entered into a non-prosecution agreement that requires it and UBS to cooperate with investigations and affirmatively disclose any information it may later uncover regarding US-related accounts, the Justice Department said.
