Credit score Suisse to pay $234 million to finish French tax probe By Reuters

By Tangi Salaün

PARIS (Reuters) -Credit score Suisse agreed to pay France 238 million euros ($234 million) to settle a tax fraud and cash laundering case on Monday, placing one other authorized headache behind it because it prepares a strategic overhaul.

The settlement resolves an investigation in France over whether or not the Swiss financial institution, which is making an attempt to get better from losses and scandals, helped shoppers to keep away from paying tax on their wealth.

The alleged scheme, which prosecutors have mentioned befell in a number of international locations between 2005 and 2012, precipitated “fiscal harm” of greater than 100 million euros to the French state, the prosecution workplace mentioned.

The financial institution mentioned in a press release: “The settlement doesn’t comprise a recognition of prison legal responsibility. The financial institution is happy to resolve this matter, which marks one other vital step within the proactive decision of litigation and legacy points.”

Credit score Suisse legal professionals declined to reply questions on the settlement in courtroom, with one among them saying that the deal was one of the best ways to “flip the web page”.

Credit score Suisse shares dipped barely after information of the settlement. They recovered to commerce 1.4% greater by 0915 GMT.

One in all Switzerland’s systemically vital banks, Credit score Suisse is scheduled to launch particulars of its strategic evaluate alongside third-quarter outcomes on Oct. 27.

The financial institution has appeared extra prepared to settle authorized issues beneath new authorized chief Markus Diethelm, who joined in July and has taken a extra pro-active strategy than his predecessor.

This month it agreed to pay $495 million to settle allegations it mis-sold mortgage-backed securities in the USA, the most recent pay-out associated to previous blunders which have battered the financial institution’s fame.

In June, the financial institution was convicted of failing to stop cash laundering by a Bulgarian cocaine trafficking gang, whereas a Bermuda courtroom dominated {that a} former Georgian prime minister and his household had been due damages of greater than $600 million from Credit score Suisse’s life insurance coverage arm, which the financial institution is interesting.

An identical case is pending in Singapore.

The U.S. Justice Division can also be reported to be investigating whether or not Credit score Suisse continued serving to U.S. shoppers conceal belongings from authorities, eight years after the Swiss financial institution paid a $2.6-billion tax evasion settlement.

($1 = 1.0179 euros)