23-Feb-14
Credit Suisse is to pay $ 196 million and admit wrongdoing , to resolve civil charges that it violated the federal securities laws that are not registered with federal regulators, in thousands of dollars to provide financial advisory services.
However, headquartered in Zurich, Switzerland, international banks are still suspected it also helped wealthy American clients evade taxes millions of dollars in hidden assets in offshore accounts tax criminal investigation.
Formalize civil agreement Friday, the U.S. Securities and Exchange Commission , said Credit Suisse solicit U.S. customers by assigning account managers to provide investment advice and execution of securities transactions to help reclaim the cost of about $ 82 million - all without the necessary registration .
" Registration requirements of the core investor protection broker dealers and investment advisers , " said Andrew enforcement director Ceresney, SEC , and the announcement of the liquidation order. "Due to Credit Suisse acknowledged as part of the settlement , its staff for many years failed to comply with these requirements, the company took too long to achieve compliance ."
Credit Suisse said the settlement requires repayment of all interest charges and penalty fees are included headquartered in increased litigation provisions made ??during the fourth quarter of 2013 global bank located in Zurich .
"We are very pleased to be able to resolve this issue, said:" OK , it added that it is continuing its efforts to solve the problem of tax avoidance on the Justice Department probe .
According to the U.S. Securities and Exchange Commission , Credit Suisse began as early as 2002 , brokerage services to U.S. customers . Customer Relationship Manager secretive roughly 107 registered to the United States from 2002-2009 and to provide investment services.
The bank said the final total of 8,500 U.S. customers an average of $ 5.6 billion in account assets in the securities , the SEC order.
Credit Suisse began winding down of cross-border financial advisory business in 2008 , there were news reports, federal authorities are charging the Swiss banking giant has hidden assets in offshore accounts tax the rich to help the United States pursue duck larger rival UBS .
UBS reached agreement with the U.S. authorities to defer prosecution , admit fault, pay a fine of $ 780 million and agreed to hand over data the estimated 4,450 wealthy American clients in 2009 .
The landmark agreement , breaking the confidentiality deep cracks in traditional Swiss banks. So far, the United States, dozens of customers who helped UBS tax evasion trial or convicted or pleaded guilty in federal court .
Federal authorities reported tax evasion crackdown last year , when the Swiss bank Wegelin & CO pleaded guilty , was accused of conspiring with American clients hide more than 120 billion of its criminal indictment from the IRS. Bank ordered to pay compensation of nearly merged in $ 57.9 million , fine and confiscation , since the shutdown.
Kathryn Keneally , Assistant Attorney General Convention last month, told the Tax Code 106 other Swiss banks have signed a letter of intent to seek non-prosecution agreement and a letter to the federal investigation of suspected American tax evaders information.
But not to prosecute does not apply to transactions Credit Suisse and approximately 13 other Swiss banks , the former Justice Department 's tax evasion investigation.
In addition , the Senate Permanent Subcommittee investigation has been scheduled Feb. 26 hearing is expected to seek help who allegedly evading taxes in some secret efforts focused on Credit Suisse and other banks registered U.S. customers.
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