NEW YORK – Credit Suisse Services AG pleaded guilty Monday to conspiring with U.S. taxpayers to conceal more than $4 billion in assets across at least 475 offshore accounts, marking a major development in a long-running investigation into global tax evasion by the U.S. Department of Justice.
The Swiss entity, a part of Credit Suisse AG, also admitted to violating the terms of a 2014 plea agreement with the Justice Department by continuing to facilitate tax evasion for high-net-worth American clients until at least July 2021. As part of the resolution, Credit Suisse Services AG agreed to pay more than $510 million in penalties, restitution, and fines.
The company entered into a non-prosecution agreement (NPA) in connection with undeclared accounts at Credit Suisse AG Singapore. The NPA requires full cooperation in ongoing investigations and mandates the disclosure of any newly uncovered information on U.S.-related accounts.
According to court documents, Credit Suisse bankers engaged in several fraudulent activities, including falsifying records and processing fictitious donation paperwork, to help clients evade IRS reporting requirements. The bank continued to offer private banking services that concealed ownership of offshore accounts, in violation of U.S. tax laws.
“Credit Suisse AG committed new crimes and breached its May 2014 plea agreement with the United States,” the Justice Department said. Between 2014 and 2023, Credit Suisse AG Singapore held more than $2 billion in undeclared assets belonging to U.S. persons.
UBS detects undeclared U.S. accounts during merger review
In 2023, following its merger with Credit Suisse AG Singapore, UBS AG identified potentially undeclared accounts and voluntarily disclosed this information to U.S. authorities. UBS froze certain accounts and launched an internal review as part of its cooperation with federal investigators.
Under the terms of today’s agreements, neither Credit Suisse nor UBS receives protection for any individuals involved. Both institutions must continue assisting the Justice Department and IRS Criminal Investigation with related probes.
The guilty plea and financial penalties were announced by Acting Deputy Assistant Attorney General Karen E. Kelly, U.S. Attorney Erik S. Siebert of the Eastern District of Virginia, and IRS-CI Chief Guy Ficco.
