Credit Suisse (CS), which was recently sold to UBS, has been found to have continued to support Americans’ overseas tax evasion in violation of an agreement with U.S. law enforcement authorities.
According to the Wall Street Journal (WSJ) on the 29th (local time), the U.S. Senate Finance Committee confirmed in a two-year investigation report that CS seriously violated the 2014 sentence deal with the U.S. Department of Justice on charges of offshore tax evasion.
The Financial Services Commission explained that CS transferred $100 million related to a rich American from Latin America with dual citizenship to another bank account without reporting, which violated the sentence deal agreed with the Ministry of Justice.
According to the committee, CS employees also plan to help Dan Holsky, a business school professor in the United States who pleaded guilty to tax evasion in 2016, hide $220 million of assets abroad.
The committee then disclosed 23 suspicious accounts held by U.S. customers only years after CS agreed, and concluded that Americans were hiding at least $700 million of assets in Credit Suisse.
The committee urged the Ministry of Justice and the National Tax Service to further investigate CS, while insisting that the UBS or the Swiss government, which took over CS, should take responsibility for the breach of the agreement. The fine for violating the agreement is expected to exceed $1 billion.
Earlier in 2014, CS acknowledged the tax evasion teacher and aid behavior of employees who supported Americans’ tax evasion and agreed to pay $2.5 billion in fines through sentence transactions with the U.S. Department of Justice.
Meanwhile stocks rose as concerns over the aftermath of the bankruptcy of Silicon Valley Bank (SVB) subsided. In addition, as the crisis is calming down due to the U.S. authorities’ quick response, investors expect the authorities to come forward and resolve the next crisis.
The dollar index, which shows the dollar’s value against the currencies of six major countries, fell 0.25% from the previous session.