Banking giant Credit Suisse admits to tax-related offenses, settles for a fine of $511 million
In May 2025, Credit Suisse, now owned by UBS following a $3.25 billion government-orchestrated deal in March 2023, agreed to a settlement with the U.S. Department of Justice to resolve a tax evasion probe that spanned over a decade. The bank admitted to conspiring to aid and assist in the preparation of false income tax returns, hiding more than $4 billion from the Internal Revenue Service through at least 475 offshore accounts.
Key details of the settlement include:
- Credit Suisse was found to have facilitated the tax evasion scheme for over a decade, helping taxpayers hide assets and income in offshore accounts.
- The $511 million settlement was part of a broader set of resolutions between UBS and U.S. authorities for legacy misconduct cases.
- The settlement addressed the prolonged investigation into Credit Suisse's role in the tax evasion scheme.
- Credit Suisse's guilty plea acknowledged the conspiracy involving the concealment of over $4 billion in assets from U.S. tax authorities.
This tax evasion case is distinct from Credit Suisse's mortgage-backed securities settlements and other penalties related to risk management failures. The mortgage securities case settlement occurred earlier (2017), and UBS made a $300 million payment in 2025 to finalize remaining Credit Suisse obligations there.
The investigation leading to the 2025 settlement began in 2021, with records detailing Credit Suisse employees' role in helping U.S. businessman Dan Horsky conceal over $220 million in offshore accounts from the IRS. The bank was also found to have falsified records, processed fictitious donation documents, and serviced over $1 billion in accounts without documentation of tax compliance.
The Department of Justice's probe led to the indictment of eight Credit Suisse executives. In addition, the bank was found to have failed to report a potential ongoing criminal tax conspiracy involving nearly $100 million in secret offshore accounts belonging to a family of dual U.S.-Latin American citizens.
The Senate Finance Committee conducted an investigation into Credit Suisse's violations of its 2014 plea agreement. In the 2014 plea deal, Credit Suisse admitted to assisting U.S. taxpayers in hiding offshore accounts from the IRS and paid $2.6 billion. However, the bank was later found to have committed new crimes and breached its 2014 plea agreement with the United States.
Finance Committee Ranking Member Ron Wyden called for the criminal prosecution of Credit Suisse bankers and advisers who helped wealthy clients evade taxes. The funds from these secret offshore accounts were transferred to other banks without notifying the DOJ, a requirement of the 2014 plea agreement.
Earlier this year, a Senate Budget Committee investigation revealed Credit Suisse had more Nazi-linked accounts than previously known and obscured such information in the past. The Swiss bank provided offshore private banking services that helped taxpayers conceal assets and income from the IRS.
[1] Credit Suisse Settlement (2025) [2] Mortgage Securities Settlement (2017) [3] Senate Finance Committee Investigation (2021) [4] Department of Justice Probe (2021-2025)
- The $511 million settlement between Credit Suisse and the U.S. Department of Justice in 2025 was not only related to mortgage-backed securities, but also a resolution for the bank's decade-long role in aiding tax evasion, involving more than $4 billion hidden in offshore accounts.
- The Department of Justice's probe from 2021 to 2025 not only uncovered Credit Suisse's violations of its 2014 plea agreement, but also led to the indictment of eight executives, the failure to report a potential ongoing criminal tax conspiracy, and the subsequent call for the criminal prosecution of the bank's advisers by the Senate Finance Committee.
