|David Voreacos and Tom Schoenberg|
The plea also signals a tougher posture by the
“This case shows that no financial institution, no matter its size or global reach, is above the law,” Attorney General
The bank will pay
Credit Suisse AG is the bank subsidiary of the ultimate parent, Credit Suisse Group AG. Credit SuisseAG has dozens of subsidiaries that conduct most of the firm’s business, according to its most recent annual report. The bank was charged by the U.S. along with two subsidiaries earlier today.
Credit Suisse Group AG Chief Executive Officer
“We can now focus on the future and give our full attention to executing our strategy,” Dougan said today in a statement, in which the company estimated what effect the deal will have on the quarter’s earnings. “We have seen no material impact on our business resulting from the heightened public attention on this issue in the past several weeks.”
The company will reduce risk-weighted assets to a level at or below what it was at the end of 2013 and take other steps to bolster capital, such as selling surplus real estate and other non-core assets, Dougan said.
Credit Suisse assisted U.S. clients in using sham entities to disguise undeclared accounts, failed to maintain U.S. account information and destroyed records sent to U.S. clients, according to court papers filed in
The bank also helped clients withdraw money from accounts by providing hand-delivered cash or usingCredit Suisse’s correspondent bank accounts in the U.S., the government said. The bank structured such transactions in a way that would evade currency reporting requirements, according to the filing.
Credit Suisse hasn’t identified as many account holders as bigger rival
In 2009, UBS avoided prosecution by paying
The last global bank to plead guilty in the U.S. was Credit Lyonnais SA, which admitted in 2004 it made false statements to the Federal Reserve. Banks including
The Credit Suisse case involves tax evasion by U.S. clients that dates back decades, according to the government. After U.S. prosecutors charged seven Credit Suisse bankers and a trust company manager in 2011 for helping Americans hide
Managers in the cross-border business “knew and should have known that they were aiding and abetting U.S. customers in evading their U.S. income taxes,” according to their indictment. The filing outlined how bankers helped 35 American customers use sham companies, foundations and trusts to hide their money from U.S. tax authorities. Bankers told U.S. clients to keep no records and access offshore funds with credit and debit cards.
Credit Suisse agreed to pay
The lender is the largest of 14 Swiss banks facing similar criminal probes by the U.S. The agreement today could provide a road map for the 13 others seeking peace with the U.S. The outcome also could affect an additional 106 Swiss banks that are seeking non-prosecution agreements.
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