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Credit Suisse pays 2.6bn dollars fine for helping US clients avoid taxes

Tuesday, May 20th 2014 - 08:33 UTC
Full article 2 comments
CEO Dougan: no material impact “on our business resulting from the heightened public attention on this issue in the past several weeks” CEO Dougan: no material impact “on our business resulting from the heightened public attention on this issue in the past several weeks”
“They subverted disclosure requirements, destroyed bank records, and concealed transactions” said Holder “They subverted disclosure requirements, destroyed bank records, and concealed transactions” said Holder

The Swiss banking giant Credit Suisse has pleaded guilty to helping some US clients avoid paying taxes to the US government and agreed to pay a 2.6bn fine. It is the biggest bank to plead guilty to criminal charges in the US in more than 20 years.

 US attorney general Eric Holder the bank helped US “tax cheats dodge US taxes”. Credit Suisse said in a statement it deeply regretted the past misconduct. The bank said the settlement would reduce its second-quarter net profit by 1.6bn Swiss Francs (1.8bn).

However, as part of the agreement with US regulators, the bank will not lose its banking license in the US.

The bank's chief executive, Brady Dougan, said: “Having this matter fully resolved is an important step forward for us. We have seen no material impact on our business resulting from the heightened public attention on this issue in the past several weeks.”

“The bank went to elaborate lengths to shield itself, its employees, and the tax cheats it served from accountability for their criminal actions,” said Mr Holder at a press conference.

“They subverted disclosure requirements, destroyed bank records, and concealed transactions involving undeclared accounts by limiting withdrawal amounts and using offshore credit and debit cards to repatriate funds.”

Mr Holder said the tax evasion schemes went back decades, saying that in one case, the practice of using sham entities began more than 100 years ago.

However, according to US media reports, neither Credit Suisse chairman Urs Rohner nor chief executive Brady Dougan are expected to lose their jobs as a result of the agreement.

US authorities have already indicted eight Credit Suisse employees who helped clients evade taxes.

Credit Suisse is not alone. US prosecutors are chasing more than a dozen other Swiss banks for allegedly helping wealthy Americans dodge US taxes, and at the press conference, they hinted that there would be more settlements to come.

In 2009, another Swiss bank, UBS, settled similar charges with US regulators for 780m dollars as well as an agreement in which the bank would give US authorities the names of its so-called “secret” account holders.

Categories: Economy, International.

Top Comments

Disclaimer & comment rules
  • Klingon

    Yep, the US govt needs more $ to start another war.

    May 21st, 2014 - 12:58 am 0
  • chris2014

    Some people start with using whatever legal means to reduce their current or future tax liabilities but finish with doing illegal things to avoid paying taxes. One way or another, most people are responsible for paying taxes. Avoiding paying taxes is a crime and if you’re caught, you’ll face criminal charges and monetary penalties. If you have cheated and were fined, you can rely on a payday loan. It is a good financial option for solving financial difficulties.

    May 26th, 2014 - 05:59 pm 0
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