24/10/22

SWITZERLAND: Credit Suisse settles French tax fraud probe for €238 million.

As published on france24.com, Monday 24 October, 2022.

Credit Suisse settled a tax fraud and money laundering case in France on Monday with a 238 million euro ($234 million) payment to the state, putting another legal headache behind it as it readies to unveil a strategic overhaul.

The agreement, announced in a French court and confirmed by the bank in a statement, resolves the investigation in France over whether the Swiss bank helped clients avoid paying tax on their wealth.

The alleged scheme, which prosecutors say took place in several countries between 2005 and 2012, caused a fiscal damage of over 100 million euros to the French state, the prosecution office said.

Credit Suisse lawyers declined to answer questions on the settlement in court, with one of them only saying that the deal was the best way to "turn the page".

One of Switzerland's systemically important banks, Credit Suisse is scheduled to release details of a much-anticipated strategic review alongside third-quarter results on Oct. 27.

The bank has appeared more willing to settle legal matters under new legal chief Markus Diethelm, who joined in July and has taken a more pro-active approach than his predecessor.

This month it agreed to pay $495 million to settle allegations it mis-sold mortgage-backed securities in the United States, the latest pay-out related to past blunders that have battered the bank's reputation.

In June, the bank was convicted of failing to prevent money laundering by a Bulgarian cocaine trafficking gang, while a Bermuda court ruled that a former Georgian prime minister and his family were due damages of more than $600 million from Credit Suisse's life insurance arm, which the bank is appealing.

A similar case is pending in Singapore.

The US Justice Department is also reportedly investigating whether Credit Suisse continued helping US clients hide assets from authorities, eight years after the Swiss bank paid a $2.6-billion tax evasion settlement.