Switzerland’s Credit Suisse Embroiled in Fresh Tax Evasion Scandal

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A two-year investigation by the US Senate Finance Committee has uncovered evidence that Credit Suisse, Switzerland’s second-largest bank, failed to report secret offshore accounts used by wealthy Americans to evade taxes. The committee alleges that the bank’s employees aided tax evasion by clients and concealed millions of dollars in offshore assets.

Investigation Findings

• Credit Suisse did not disclose nearly $100 million in accounts belonging to a family of American taxpayers.
• The bank helped a US businessman hide over $220 million from the IRS.
• The bank had previously pleaded guilty to conspiracy to aid and assist US taxpayers in filing false income tax returns and concealing offshore assets.

Ongoing Criminal Conspiracy

The Senate report highlights an ongoing, possibly criminal conspiracy involving these accounts, which were not declared to tax authorities. Credit Suisse has revealed that it has found 23 accounts worth over $20 million each, many of which were only recently discovered.

Bank’s Response

Credit Suisse has responded by saying that it does not tolerate tax evasion and has implemented extensive enhancements since 2014 to root out individuals who seek to conceal assets from tax authorities. The bank also claimed that the Senate report describes “legacy issues” that have been addressed since then.

Criticism from Senator Ron Wyden

Senator Ron Wyden, the Democratic chairman of the committee, criticized Credit Suisse for not living up to its promise to stop aiding tax evasion.

“Credit Suisse got a discount on the penalty it faced in 2014 because bank executives swore they would get out of the business of defrauding the United States,” Wyden said. “This investigation shows that Credit Suisse did not make good on that promise, and the bank’s pending acquisition does not wipe the slate clean.”

Implications for UBS

The findings come as a major blow to Credit Suisse, which is currently under pressure due to turmoil in the global financial system. The Swiss government has pressed for a $3.25 billion takeover of the bank by rival UBS, but the Senate report poses new problems for UBS as it tries to absorb Credit Suisse.

Call for Greater Transparency and Accountability

Lawmakers are calling for greater transparency and accountability from the bank, particularly as it prepares to merge with UBS. The committee’s findings suggest that Credit Suisse may still be hiding hundreds of millions of dollars in large, undeclared accounts belonging to ultra-wealthy Americans.