UBS is reportedly on the verge of reaching a settlement in the United States over alleged violations of a 2014 agreement between Credit Suisse and the US Department of Justice concerning undeclared funds.
According to a report by the «Wall Street Journal» (WSJ), UBS is currently addressing allegations from the Department of Justice (DOJ) regarding Credit Suisse's handling of undeclared client funds belonging to American customers.
In 2014, Credit Suisse agreed to a $2.6 billion settlement with US authorities over tax issues. As part of this agreement, the bank committed to terminating relationships with clients whose funds were not declared to tax authorities.
Incomplete Disclosure?
The DOJ alleges that Credit Suisse did not fully comply with this obligation. According to the WSJ, «The Swiss bank promised to provide the Justice Department with information on the accounts it shut and where the money went next. Failing to do so left it open to further punishment..»
The WSJ reports that Credit Suisse has agreed to make an additional payment to US authorities of «at least hundreds of millions of dollars.» The new settlement could be announced as early as this week.
This marks one of the final major actions by the DOJ under the outgoing administration of President Joe Biden.
When asked by about the allegedly imminent settlement, the bank declined to comment.
Former Client Also Sued
According to reporting by the news agency «Bloomberg», a lawsuit against a former Credit Suisse client also plays a role in this matter. A businesswoman from Florida, holding dual US and Colombian citizenship, along with two of her family members, has been charged this week with hiding $90 million from tax authorities between 2010 and 2017. She is accused of concealing money in undeclared foreign accounts while simultaneously filing false tax returns to evade taxes on unreported income.
Although Credit Suisse is not mentioned in this lawsuit, the case bears a striking resemblance to allegations raised before a Senate committee in 2023.
