Credit Suisse has pleaded guilty to US charges of helping wealthy Americans evade taxes. The bank will pay a fine of more than $510 million. Credit Suisse Services was sentenced for conspiring to hide over $4 billion from the US Internal Revenue Service in at least 475 offshore accounts.
The guilty plea involved the Swiss bank maintaining accounts in Singapore for US taxpayers. These taxpayers used offshore accounts to evade US taxes and reporting requirements. “Among other fraudulent acts, bankers at Credit Suisse falsified records, processed fictitious donation paperwork, and serviced more than $1 billion in accounts without documentation of tax compliance,” the Justice Department stated.
This guilty plea breaches Credit Suisse’s 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.
Credit Suisse’s guilty tax plea
It agreed to pay a $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 found in 2023 that Credit Suisse violated its 2014 deal with US authorities. The bank continued to aid in tax evasion and concealed more than $700 million from the government.
UBS, which acquired Credit Suisse in 2023, stated that Credit Suisse Services pleaded guilty to one count of conspiracy. This was to aid and assist in the preparation of false income tax returns. UBS emphasized that it was not involved in the underlying conduct, which began before its acquisition of the bank.
In addition to the guilty plea and fine, Credit Suisse Services entered into a non-prosecution agreement. This requires it and UBS to cooperate with investigations and disclose any information it may later uncover regarding US-related accounts, the Justice Department said.
