Credit Suisse was shocked to have its offices visited and searched in five European locations. Complex insurance products are reportedly behind the probe.
The Zurich-based bank is in trouble in at least five European countries as well as in Australia, as finews.asia reported earlier this year. Chairman Urs Rohner said in April that the Swiss bank still doesn't know what it did wrong.
The nub of Credit Suisse's problem is helping wealthy clients shield money from taxes through insurance wrappers, according to «Neue Zuercher Zeitung» (in German).
The probe would represent a widening of the bank's troubles with so-called insurance wrappers, for which it has already run into trouble with Italian and German officials – and paid dearly.
«Preservation» Ordered
The products «wrap» stocks, bonds or other assets, which can lighten the owner's tax load. Insurers such as Swiss Life also sell these products, which offer an entirely legal tax break.
Credit Suisse has told employees not to delete or destroy any paperwork, emails, audio or video files of clients from the U.K., the Netherlands or France relating to life insurance wrappers, «NZZ» reported, citing a preservation notice by the bank to staff.
An unidentified former Credit Suisse private banker told the paper that the insurance wrappers were for a time provided for the express purpose of helping clients avoid taxes. The bank didn't comment; finews.com wasn't able to verify the former Credit Suisse banker's claim.
Costly Italian Probe
Nearly two years ago, Credit Suisse paid 109 million euros to Italian prosecutors to get out of a probe over the insurance wrappers.
The newspaper said that Switzerland, which won't hand over client data without a fight, hasn't received any requests for legal assistance relating to the newest wrapper probe.
Foreign officials may using the insurance probe as a wedge into untaxed accounts in Switzerland itself, the newspaper surmises.
