27-Feb-14
Credit Suisse CEO Brady Dougan acknowledged Wednesday , the Swiss banking giant helped American clients stealth tax evasion , the bank " very deep regret ."
Testified at a Senate hearing offshore tax evasion , Dugan said the action is mainly restricted to a small group of Swiss employees who hid their own efforts from headquarters in Zurich bank executives .
This indicates that the fault recognition and Credit Suisse to follow , at least from 2001 to 2008 to enable as many as 22,000 Americans control an estimated $ 12 billion secret offshore accounts to pay the IRS a duck Senate Report of the Subcommittee .
" Credit Suisse 's management team , unfortunately, very deep , although we have established an industry-leading compliance measures , we have a few who seem to have been in violation of Swiss private bankers of U.S. law ." In his oral testimony Wednesday hearings would say by the Senate permanent Subcommittee on Investigations Dougan.
"Although I am very frustrated by their behavior ...... I also believe that leaders need to face the past , what is our responsibility as employees , " Dugan said.
Subcommittee report issued on Tuesday showed , Credit Suisse, Switzerland's second largest bank , bankers secretly tourist visa to the United States to attract wealthy American customers. They recruited clients in high society party in New York and Florida golf outing. They met at a pre-existing U.S. customers five-star hotel , in one case after web account statements into a sports magazine Illustrated , the report shows .
By Senator Carl Levin , d is Michigan , who chairs the subcommittee questioned , said Dougan ongoing internal investigation by the bank have confirmed many of the Subcommittee report found that :
" I think that when you do the same unusual , " Dougan told Levin.
He said the bank has tightened its internal controls and offshore tax evasion and criminal investigations involving the Department of Justice and 13 other Swiss Credit Suisse bank cooperation.
However, in response to the Subcommittee questioned , Credit Suisse executives said , almost no activity has been designed for launch by the Senate report disclosed bankers involved.
"When we discovered this behavior , when most of the people are gone, " Dougan testify.
Subcommittee members and other third interludes Dougan , Credit Suisse executives and black box criticism.
" Bank secrecy has been discredited and condemned , but it does not go," Levin said . " Billions in taxes still can not be recovered, thanks to the tax evaders ' use of bank secrecy , and we have a great deal of attention , in the battle to collect taxes hidden offshore assets seems stalled. "
Sen. John McCain , R- Arizona. , The minority party members of the Subcommittee , also criticized the Swiss government 's call history secrecy laws , and the U.S. Department of Justice from the subpoena issued by Credit Suisse in 2011 ram . These subpoenas seeking the names and account data , Credit Suisse 's U.S. customers can be traced back to 2000.
"Any idea the Swiss government is working with us is a joke , " McCain said.
DOJ eventually summons pause , and then through the USA and Switzerland treaty process requires. But two years later , only $ 238 account information transfer .
Officials in the U.S. and Switzerland negotiated 2009 agreement , the agreement is expected to provide additional disclosures. However, this agreement has not yet won the approval of the Senate.
In the meantime, tofu and other Credit Suisse executives said they face potential prosecution under Swiss law , if they comply with the U.S. subpoenas .
"You face a double danger ? You want to spend time ? " Quipped Sen. Tom Coburn , R- Oklahoma .
Levin , pointedly noted in part by their headquarters in the United States have differences profit Credit Suisse and other Swiss banks , said, "You want to do business here , you must abide by our laws .
" Pony name," Levin said .
Subcommittee members also criticized the Justice Department for the weak characteristics of their efforts to force banks to disclose American client 's name in Switzerland . They pointed out that since 2009 , federal prosecutors to reach a final result of legal assistance only two Swiss banks suspected of tax evasion .
UBS , Switzerland's largest bank , reached a deferred prosecution agreement in 2009 to pay a fine of $ 780 million , paid about 4,450 American customer information . Wegelin & CO conspiracy indictment pleaded guilty in 2012 and ordered to pay a fine of $ 74 million and forfeiture .
"If you think this is a progressive , well I'm not," McCain said.
Deputy Minister of Justice , James Cole responded that prosecutors are focused on building more criminal cases , which will force banks in Switzerland and elsewhere , in order to determine the U.S. tax evaders .
A total of 106 applications intention Swiss bank , they will seek an agreement not to sue , which will require them to pay steep penalties and financial data , if not the actual names of U.S. customers , the notice said Assistant Attorney General Catherine Keneally , who heads the tax department .
Cole said that for overseas tax evasion continued federal efforts to promote more than 40,000 Americans who have offshore accounts to come clean on the IRS leniency program , and pay more than six billion billion tax , interest and penalties.
|