Offshore business of Swiss bank investigated
July 16, 2011, Saturday
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Print Edition
Print Edition
THE US Justice Department is investigating Credit Suisse Group's offshore business with wealthy American clients as part of a larger probe into suspected US tax evaders, the Swiss bank said yesterday.
Credit Suisse said it was informed of the investigation by letter on Thursday and will cooperate with US authorities within the limits set by Swiss banking secrecy laws.
"The investigation concerns historical private banking services provided on a cross-border basis to US persons," the bank said in a statement. It stopped providing those services in 2008.
Credit Suisse is the most high-profile Swiss bank to be targeted by US investigators since rival UBS AG became embroiled in a tax evasion probe three years ago.
Zurich-based UBS admitted to helping US clients hide money on offshore accounts. It ended up paying a fine and giving US authorities details on thousands of American account holders. The case prompted Switzerland to soften its strict banking secrecy rules in response to international pressure.
Switzerland's top court yesterday upheld the Swiss government's right to order the handover of UBS customer data, a move that was challenged by some of the affected clients.
The Federal Tribunal in Lausanne said the government had the right to use emergency powers to prevent "serious and virtually uncontrollable economic repercussions for Switzerland" had it failed to order the release of the documents.
Analysts at Zuercher Kantonalbank noted that a new treaty currently being discussed by Bern and Washington - which would automatically tax the accounts of American bank clients in Switzerland - might ease the pressure on Credit Suisse and other Swiss banks.
Credit Suisse said it was informed of the investigation by letter on Thursday and will cooperate with US authorities within the limits set by Swiss banking secrecy laws.
"The investigation concerns historical private banking services provided on a cross-border basis to US persons," the bank said in a statement. It stopped providing those services in 2008.
Credit Suisse is the most high-profile Swiss bank to be targeted by US investigators since rival UBS AG became embroiled in a tax evasion probe three years ago.
Zurich-based UBS admitted to helping US clients hide money on offshore accounts. It ended up paying a fine and giving US authorities details on thousands of American account holders. The case prompted Switzerland to soften its strict banking secrecy rules in response to international pressure.
Switzerland's top court yesterday upheld the Swiss government's right to order the handover of UBS customer data, a move that was challenged by some of the affected clients.
The Federal Tribunal in Lausanne said the government had the right to use emergency powers to prevent "serious and virtually uncontrollable economic repercussions for Switzerland" had it failed to order the release of the documents.
Analysts at Zuercher Kantonalbank noted that a new treaty currently being discussed by Bern and Washington - which would automatically tax the accounts of American bank clients in Switzerland - might ease the pressure on Credit Suisse and other Swiss banks.
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