US lawmakers have accused Credit Suisse of violating a plea agreement with American authorities by failing to report secret offshore accounts used by wealthy Americans to avoid paying taxes. A two-year investigation found that employees at the Swiss bank had aided tax evasion by clients. Credit Suisse revealed it had found 23 accounts each worth more than $20m that were not declared to tax authorities, with more than $700m concealed in violation of the bank’s nine-year-old plea deal with the US Justice Department. The bank has faced a range of difficulties, from hedge fund losses to fines for failing to prevent money laundering by a Bulgarian cocaine ring. It has said it “does not tolerate tax evasion” and has implemented “extensive enhancements” to address legacy issues.
The revelation that Credit Suisse may still be concealing hundreds of millions of dollars in undeclared accounts belonging to ultra-wealthy Americans raises concerns that the bank has not complied with the plea deal it signed with the US Justice Department in 2014. The bank had promised to report undeclared accounts and provide other information to US officials in exchange for avoiding criminal charges. However, the Senate committee’s investigation found that Credit Suisse had failed to report secret offshore accounts that wealthy Americans used to avoid paying taxes, and that more than $700m was concealed in violation of the bank’s plea deal. The discovery of 13 out of 23 potentially undeclared accounts just days before the report’s release suggests that the bank may still be involved in aiding tax evasion by clients.
