Swiss bank Credit Suisse is being probed by the US Department of Justice as part of a broader investigation into banks suspected of helping Americans evade taxes. Credit Suisse said on Friday it had received a letter saying it was a target of a DoJ investigation concerning "historical private banking services provided on a cross-border basis to US persons".
In a major blow to banking secrecy that helped Switzerland build up a multi-trillion-dollar offshore banking industry, Credit Suisse's local rival UBS paid a $780 million fine in 2009 and agreed to hand over information about nearly 5,000 secret accounts held by US citizens to settle US charges it aided tax evasion. When four current and former Credit Suisse bankers were charged in February with helping Americans dodge taxes, the bank said it was not a subject of the investigation and was co-operating.
"Subject to our Swiss legal obligations, we will continue to cooperate with the US authorities in an effort to resolve these matters," Credit Suisse said on Friday. Offshore tax havens have come under attack in recent years as cash-strapped governments seek to boost revenues in the wake of the financial crisis, forcing countries like Switzerland to pledge to cooperate more to help hunt tax cheats.
A report from the Boston Consulting Group said wealthy US individuals had pulled most of their money from Swiss private banks since 2006, in the wake of the crackdown. Since settling with UBS, the DoJ has been conducting a broad investigation into a number of Swiss banks, bankers, and intermediaries to see if they have helped clients dodge taxes. Companies involved in that probe include Credit Suisse, the second-largest bank in Switzerland; HSBC, Europe's largest bank; Julius Baer, a private bank based in Zurich; and Basler Kantonalbank, a Swiss cantonal bank.
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