UBS Group
AG (UBS) has agreed to pay $511 million to resolve a U.S. investigation into
tax evasion practices at Credit Suisse, the Swiss bank it acquired last year.
The settlement addresses allegations that Credit Suisse continued helping
wealthy Americans hide assets from the Internal Revenue Service (IRS) even
after a previous 2014 plea agreement.
UBS to Pay $511 Million to
Settle Credit Suisse Tax Evasion Case
A Credit Suisse
unit pleaded guilty to conspiring to help clients conceal more than $4 billion
from tax authorities across at least 475 offshore accounts. Additionally, U.S.
authorities filed a criminal charge related to accounts at Credit Suisse’s
Singapore operations, which will be dismissed if the bank cooperates with
ongoing investigations.
“UBS
was not involved in the underlying conduct and has zero tolerance for tax
evasion,” UBS stated, noting it expects to recognize a credit at group
level from the partial release of contingent liabilities established during its
Credit Suisse acquisition.
UBS agreed to pay $511 million to settle a US investigation into how Credit Suisse, the Swiss bank it bought, helped rich Americans evade taxes even after pledging to stop the practice a decade ago https://t.co/jvrWvkwMai
— Bloomberg (@business) May 5, 2025
Credit Suisse’s Hidden
Accounts
Court
documents revealed
that Credit Suisse enabled tax evasion by several wealthy clients, including an
unnamed European billionaire with U.S. residency. Despite news articles
identifying this individual as a U.S. resident as early as 2010, Credit Suisse
kept the account open for years.
The
settlement follows a 2023 Senate Finance Committee report that
identified “major violations” of Credit Suisse’s 2014
plea agreement. Senator Ron Wyden, the ranking Democratic member of the
committee, stated: “This settlement fully vindicates the findings of my
investigation.”
The case
also detailed how the bank helped Dan Horsky, an American business professor
who pleaded guilty in 2016 to hiding more than $200 million from the IRS, and a
U.S.-Colombian family that concealed approximately $90 million between 2010 and
2017.
Acquisition Aftermath
Under the
agreement, UBS must continue cooperating with U.S. authorities and disclose
information about U.S.-related accounts, potentially exposing more clients to
prosecution. The settlement provides no protections for individuals involved.
The
resolution comes as UBS
manages the aftermath of its Credit Suisse acquisition more than two years ago,
including addressing other legal matters such as an ongoing investigation into
Credit Suisse’s handling of Nazi-linked
accounts.
In the acquisition
deal, UBS paid CHF 3 billion and assume up to $5.4 billion in losses generated
by the troubled Swiss-based creditor.
Large
banks, however, are accustomed to hefty fines, often setting aside substantial
reserves in their annual budgets to cover them. In late 2022, FinanceMagnates.com
reported that Credit
Suisse paid nearly $500 million in a settlement related to the 2008
financial crisis.
This article was written by Damian Chmiel at www.financemagnates.com.
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