Credit Suisse Settles French Tax Case for $235M

Credit Suisse will pay 238 million euros ($235 million) to settle a tax fraud and money laundering case in France.

The agreement, announced by a judge in the case on Monday (Oct. 24), involves no admission of guilt by the Swiss bank but allows it to move on from what has been an ongoing litigatory headache in a year that has seen a number of high-profile cases brought against Credit Suisse.

In this instance, French authorities have accused the bank of encouraging wealthy clients in France to set up bank accounts in Switzerland between 2005 and 2012, at a time when they were out of reach of French tax authorities.

As reported by the Financial Times, the judge in the case noted that Credit Suisse staff held client meetings “very discreetly, in hotels, in restaurants, and never in official buildings” and that part of the investigation focused on the way it signed on French clients with assets under management totaling 2 billion euros.

French prosecutors have previously settled a case against HSBC for similar conduct. Another Swiss bank, UBS, is also under scrutiny for helping French customers avoid paying taxes.

The sanctions announced today are split between a penalty of 123 million euros ($121.4 million) and 115 euros ($113.5) in damages and interest payments due to the state.

The bank has previously settled a tax case in Italy and there is currently an investigation into allegations that it engaged in similar practices in the Netherlands.

In June, PYMNTS reported that the U.K. Financial Conduct Authority had put Credit Suisse on a watchlist of companies needing more supervision.

Read on: UK Regulator Puts Scandal-Plagued Credit Suisse Under the Microscope

After what has been an expensive year for the bank, which also agreed to pay $495 million to settle a case related to mortgage-linked investments in the United States last week, Credit Suisse’s new CEO Ulrich Körner is under pressure to revamp its tarnished reputation.

On Thursday (Oct. 27) Credit Suisse is expected to announce details of a major strategic overhaul intended to slim down its investment banking arm and help it recover from the scandals of the past.

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