Credit Suisse Services AG is to pay more than $510 million in penalties, restitution, forfeiture, and fines, following a multi-year investigation by US law enforcement into tax evasion by American citizens.
The Swiss corporation which has been part of UBS since its takeover in 2023 pleaded guilty to conspiring to hide more than $4 billion from the IRS in at least 475 offshore accounts. It also agreed a non-prosecution agreement relating to ongoing investigations by the Justice Department in connection with US accounts booked at Credit Suisse AG Singapore.
The conspiracy charges relate to a period from 2010 to at least 2021, when the investigation found that Credit Suisse enabled high-net-worth individuals to conceal ownership and control of assets and funds held at the bank. This led to customers not fulfilling their tax obligations to the IRS.
The Plea Agreement, NPA, and documents filed in court reveal that some bankers falsified records, processed fictitious donation paperwork, and serviced more than $1 billion in accounts without documentation of tax compliance. These acts breached a May 2014 plea agreement with the US.
Major violations of the 2014 agreement were highlighted by the 2023 Senate Finance Committee but prosecutors did not resolve the matter.
“This settlement fully vindicates the findings of my investigation,” US Senator Ron Wyden, the ranking Democratic member of the Senate Finance Committee, told Bloomberg. “Ultra-wealthy and shady Swiss bankers shouldn’t get a free pass to cook up offshore tax evasion schemes when regular Americans are paying their fair share.”
“UBS was not involved in the underlying conduct and has zero tolerance for tax evasion,” said a statement by UBS AG. “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 best interest of all its stakeholders.”
While not involved in any of the misconduct of Credit Suisse, UBS will by extension be required to cooperate with the ongoing investigation and must disclose any information it may uncover regarding US-related accounts.
“In the second quarter of 2025, UBS Group AG expects to recognize a credit from the partial release of the contingent liability established with the acquisition of Credit Suisse as part of the purchase price allocation process. UBS AG expects to record a charge in the second quarter in relation to this resolution,” the UBS statement concluded.
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