Swiss bank UBS (UBS) has agreed to pay a fine of $511 million U.S. to settle a criminal case brought against former rival Credit Suisse for its role in helping American taxpayers hide more than $4 billion U.S. in offshore accounts.
According to the U.S. Department of Justice, Credit Suisse helped Americans hide billions of dollars in at least 475 numbered bank accounts over the years.
UBS acquired Credit Suisse in 2023 for $3.2 billion U.S. and has since absorbed the failed lender.
The U.S. Justice Department says Credit Suisse conspired with “ultra-high-net-worth and high-net-worth individual clients” to help them hide money from the American government.
Specifically, Credit Suisse helped wealthy Americans evade their U.S. tax obligations between the years 2010 and 2021.
In a statement, UBS said that it was “not involved in the underlying conduct and has zero tolerance for tax evasion… With this resolution, UBS is pleased to have resolved another of Credit Suisse’s legacy issues.”
Credit Suisse was taken over by UBS following years of financial losses and trading scandals.
Credit Suisse had lost nearly 40% of its deposits in late 2022 as clients pulled money from the troubled lender.
In 2022, Credit Suisse reported a full-year net loss of $7.86 billion U.S. before the Swiss government intervened and brokered a takeover by UBS.
The stock of UBS has risen 2% this year and is currently trading at $30.77 U.S. per share on the New York Stock Exchange (NYSE).
