Credit Suisse Settles French Tax Fraud & Money Laundering Probes for €238 Million

  • Richard Marley
  • October 25, 2022
  • 2 minutes read
  • 68

Credit Suisse accepted a settlement of 238 million euros to resolve a tax scam and money laundering lawsuit with France, putting one more legal issue behind it as it prepares to restructure its business strategy.

The consensus settles an inquiry in France over whether the Swiss bank assisted clients in avoiding paying taxes on their assets. The prosecution office claimed that the alleged scam, which they believe occurred in multiple countries from 2005 to 2012, cost the French state “fiscal damage” of over 100 million euros.

The bank stated: “The settlement does not comprise a recognition of criminal liability. The bank is pleased to resolve this matter, which marks another important step in the proactive resolution of litigation and legacy issues.”

According to a source familiar with the situation, Credit Suisse will need to enhance the provisions reserved for the matter slightly. The source added that the difference would be taken into account in the 3rd result.

The settlement was indeed an ideal way to “turn the page,” according to Credit Suisse lawyers, who declined to comment when asked about it in court.

Shares of Credit Suisse decreased somewhat following the announcement. At 09:15 GMT, they had recovered and were trading 1.4% higher.

On October 27, Credit Suisse is expected to announce the findings of its strategic plan along with its third-quarter financial results. The bank has been more eager to resolve legal concerns under new legal Chief Markus Diethelm.

This month, it consented to pay $495 million to resolve claims that it improperly traded mortgage-backed securities in the US. This settlement is the most recent payment made related to earlier mistakes that have severely damaged the bank’s image.

A Bermuda court found that the Georgian ex-PM along with his family was liable for damages of over $600 million from Credit Suisse’s life insurance arm in June, and the bank is currently demanding. The bank was also found guilty of failing to stop money laundering by a cocaine trafficking gang in Bulgaria.

Eight years after the Swiss bank settled a $2.6 billion tax evasion, it is also being claimed that the US Justice Department is looking into whether Credit Suisse continued assisting US clients in hiding assets from law enforcement.

Suggested Read: Client Sues Credit Suisse for Losing $607 Million in Fraud Scheme