UBS Group AG has agreed to pay $511 million (€452 million) to conclude a U.S. tax investigation into Credit Suisse ’, which it acquired in 2023. UBS said it had nothing to do with the underlying abuse, and “ reiterated its zero tolerance for tax evasion.
The two-year investigation, launched before the merger, revealed that Credit Suisse’ helped wealthy Americans withhold more than $4 billion (€3.5 billion) from the U.S. Revenue Administration ’ (IRS) through at least 475 offshore accounts, according to the U.S. Department of Justice ’ (DoJ).
Details of the claim
Under the appeal agreement, Credit Suisse Services AG has pleaded guilty to conspiracy to help prepare fraudulent income tax returns and will pay $371.9 million (€328.8 million) as part of the agreement.
Credit Suisse AG, which owns ultra-high net worth and high net worth individual customers around the world, has conspired with employees, customers in the U.S. “, and others to deliberately help conceal ownership and control of assets held in the bank, ’ said.
In addition, Credit Suisse AG has signed a non-prosecution agreement with respect to U.S. ’ taxpayers whose accounts are held in the Singapore unit and has agreed to pay an additional $138.7 million (€122.6 million).
The DoJ noted that between “2014 and June 2023, Credit Suisse AG Singapore’ maintained undeclared accounts of U.S. citizens who knew or should have known that Credit Suisse AG Singapore’ was related to the U.S. and whose total assets were valued at over $2 billion.
UBS said it expects to cut costs as it will no longer need to allocate more money to manage the risks associated with Credit Suisse. However, in the second quarter, it will register a fee for the decision.
The DoJ added that the agreement requires both Credit Suisse Services AG and UBS AG ’ to fully cooperate in ongoing investigations, and “ to positively disclose any information it may later uncover about accounts relating to the United States.
Senate investigation confirmed
The investigation was launched in 2023 after the U.S. Senate Finance Committee found that ’ had helped Credit Suisse’ hide offshore assets from wealthy U.S. clients.
Senator Ron Wyden, senior member of the committee at “, said: "This agreement fully confirms the findings of my investigation, which revealed that Credit Suisse’ continues to hide more than $700 million overseas for wealthy Americans and violates their agreement to avoid investigation."
While ordinary Americans pay their fair share, ultra-rich and shady Swiss bankers shouldn't get a free pass to draft offshore tax evasion plans.
Credit Suisse is on its way to ’in integration
Switzerland’'s largest bank, UBS, bought ’te Credit Suisse’i for CHF 3 billion in March 2023 after its rival collapsed amid rising losses in U.S. government bonds triggered by the Federal Reserve ’'s aggressive rate hikes. Credit Suisse had already been weakened by a series of scandals, including allegations of money laundering, corruption and tax evasion.
With the help of the Swiss government, UBS benefited from this acquisition, which is also reflected in increased earnings in the global asset management and investment banking divisions. UBS stated in its February report that Credit Suisse’in integration is on track.
Sergio Ermotti, CEO of “, said: "We are confident that by the end of 2026 we will be able to largely complete the integration, achieve our financial goals and realize our growth initiatives.
UBS shares since the beginning of the year due to weak growth prospects linked to the Trump administration's tariffs %He's down by eight. However, the resolution of the Credit Suisse tax investigation is expected to ease investors' concerns after years of legal uncertainty.
