The Department of Justice announced that Credit Suisse Services AG will pay penalties exceeding $510 million for its role in assisting U.S. taxpayers in evading the IRS through offshore accounts. These penalties, which include restitution, forfeiture, and fines, are part of a guilty plea and non-prosecution agreement entered by the now UBS-owned bank. This agreement addresses the concealment of over $4 billion in assets held by wealthy clients through various offshore accounts.
Credit Suisse Services AG was found to have conspired with employees, U.S. customers, and others to help U.S. customers hide their ownership and control of assets and funds at the bank from January 2010 to July 2021. During this period, the bank provided services that enabled wealthy U.S. clients to maintain undeclared offshore accounts and evade the IRS, violating a previous 2014 plea agreement.
The non-prosecution agreement focuses on undeclared accounts for American taxpayers valued over $2 billion held at Credit Suisse AG Singapore from 2014 to June 2023. Following the acquisition of Credit Suisse, UBS discovered these accounts and voluntarily provided information to the DOJ.
Credit Suisse Services AG and UBS have agreed to cooperate with ongoing investigations and share additional information about U.S. accounts if needed. Credit Suisse had previously become the largest bank in two decades to plead guilty to a U.S. criminal charge in 2014, paying a $2.5 billion fine for aiding Americans in tax evasion.
Before the recent settlement, the U.S. Senate Finance Committee had found that Credit Suisse violated its 2014 agreement with U.S. authorities by continuing to assist with tax evasion, concealing over $700 million from the government. UBS stated that Credit Suisse Services AG pleaded guilty to one count of conspiracy to assist in the preparation of false income tax returns, emphasizing that UBS was not involved in the conduct and has zero tolerance for tax evasion.
UBS completed its acquisition of Credit Suisse in 2023, following concerns about Credit Suisse’s financial stability.