Credit Suisse has been accused of helping wealthy American clients hide more than $700 million from tax authorities, despite having agreed to cease such practices in a 2014 plea deal with the Department of Justice (DoJ). According to an investigation by Senate Finance Committee Chairman Ron Wyden, Credit Suisse continued to offer services that enabled its US clients to evade taxes through offshore accounts.
The report released on Tuesday reveals that the bank used a number of methods including transferring assets between different entities and offering loans backed by undeclared assets. The transactions were made possible by a team within Credit Suisse known as "Bank Julius Baer & Co Ltd," which was created after the bank's earlier scandal involving aiding tax evasion.
Senator Wyden criticized the Swiss Bank for failing to learn from past mistakes and continuing its involvement in illicit activities. He stated that "It is unacceptable for any financial institution - especially one with a history of misconduct - to assist wealthy Americans in cheating their way out of paying taxes."
Despite Credit Suisse's claims it had taken steps to prevent such behavior since 2014, Senator Wyden alleges it still allowed American clients access to offshore accounts where they could evade taxes. He further added that "the fact that this activity was occurring despite assurances from top executives at Credit Suisse raises serious questions about whether those executives were being truthful when they promised reforms."
This latest development comes just months after another major Swiss bank, UBS Group AG, entered into talks with US prosecutors over similar allegations related to its wealth management division. If found guilty, both banks could face significant fines and damage their reputations.
Credit Suisse declined comment on the matter but emphasized its commitment towards compliance with regulatory requirements and laws governing banking operations around the world. The bank also stated that it would cooperate fully with any investigations by relevant authorities.