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Investing.com -- UBS Group has agreed to a $511 million settlement to resolve a longstanding U.S. investigation into Credit Suisse’s breach of a previous agreement with the Justice Department. The agreement was related to U.S. clients who had evaded taxes. UBS had acquired Credit Suisse in 2023.
The announcement of the settlement came on Monday, with both UBS and the Justice Department confirming that Credit Suisse Services AG pleaded guilty to tax crimes. Additionally, they entered a separate non-prosecution agreement concerning actions in Singapore on behalf of U.S. taxpayers.
It was reported earlier this year that UBS was likely to pay at least hundreds of millions of dollars to settle the tax case associated with Credit Suisse. The Swiss bank has been working to resolve the legacy issues it inherited from the acquisition of its former competitor.
At the time of the acquisition, UBS had set aside billions of dollars to cover potential investigations and legal disputes involving Credit Suisse. The bank has now stated it anticipates a partial release of these provisions in its group second-quarter results due to the settlement. However, its operating parent bank, UBS AG, plans to record a charge in relation to the settlement.
In 2014, Credit Suisse pleaded guilty to conspiring to assist thousands of Americans in evading taxes. The bank paid $2.6 billion to U.S. authorities and agreed to eliminate any remaining undeclared American-held accounts.
The Justice Department stated that between January 2010 and July 2021, Credit Suisse assisted U.S. customers in hiding their ownership and control of assets and funds held at the bank. This action enabled these customers to evade their U.S. tax obligations, thereby violating its 2014 plea agreement with the U.S.
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