Credit Suisse Services AG Admits to Massive Offshore Tax Evasion Scheme in Landmark $510 Million Settlement

Credit Suisse Services AG has pleaded guilty to criminal charges of conspiring with US taxpayers to conceal more than $4 billion in assets through offshore accounts, in what marks a significant escalation of international efforts to crack down on financial crime and tax evasion.

The plea agreement, reached with the US Department of Justice (DOJ), also reveals that Credit Suisse breached the terms of its 2014 plea deal by continuing to assist ultra-high-net-worth clients in hiding income and assets from the Internal Revenue Service (IRS) until at least July 2021. In a parallel move, Credit Suisse Services AG has signed a non-prosecution agreement (NPA) in relation to undeclared US accounts held in Singapore, agreeing to cooperate fully with US authorities and pay over $510 million in penalties, restitution, and forfeitures.

A Pattern of Deception Spanning Over a Decade

According to court documents, from 1 January 2010 through to July 2021, Credit Suisse AG worked in concert with employees, US clients, and third parties to willfully obscure the true ownership and control of offshore assets. This allowed clients to unlawfully sidestep their US tax obligations. The misconduct included opening and servicing hundreds of undeclared accounts, falsifying documents, and facilitating the concealment of over $1 billion in funds without proper tax compliance checks. The plea explicitly states that these activities constitute a breach of Credit Suisse's 2014 plea deal, which had previously resolved earlier tax-related offences.

Singapore Operations Also Implicated

In addition to the Swiss-based misconduct, Credit Suisse AG's Singapore branch has been accused of maintaining undeclared accounts for US persons between 2014 and June 2023. Despite clear indicators of US connections, the bank failed to verify beneficial ownership or pursue appropriate due diligence. Following the merger between UBS AG Singapore and Credit Suisse AG Singapore, UBS voluntarily disclosed the existence of questionable accounts to the DOJ, froze some of them, and launched an internal review.

This proactive cooperation was acknowledged in the NPA, though it does not shield any individual bankers or executives from potential future prosecution. UBS AG, now absorbing Credit Suisse’s liabilities, is obliged to continue assisting with ongoing investigations and disclose any newly identified US-linked accounts.

Investigative Collaboration & Enforcement Impact

The enforcement action was spearheaded by the IRS Criminal Investigation’s International Tax & Financial Crimes unit, with support from the DOJ’s Tax Division, the US Attorney’s Office for the Eastern District of Virginia, and the Office of International Affairs. The resolution reflects a coordinated global response to sophisticated tax evasion schemes facilitated by major financial institutions.

Senior Litigation Counsels Nanette L. Davis and Mark F. Daly, Trial Attorney Marissa R. Brodney, and Assistant US Attorney Kimberly M. Shartar led the prosecution on behalf of the United States government.

Strategic Implications for Global Banks

This high-profile settlement serves as a warning to financial institutions worldwide about the serious legal and reputational risks of enabling tax evasion. With over $510 million in penalties and a mandate for continued cooperation, Credit Suisse Services AG’s admission underscores a broader enforcement trend targeting secrecy jurisdictions and private banking practices used to shield assets from tax authorities.

As financial transparency standards tighten globally, the case sets a powerful precedent for holding institutions accountable and enforcing compliance across borders.

Read the press release here.