A dispute that had been ongoing in the United States was finally resolved last week, and on Monday, the president of the court in Paris gave the arrangement his stamp of approval.
The second Swiss bank is relentless in its efforts to rectify the mistakes of the past. The financially troubled Credit Suisse came to an agreement with France on Monday to make a payment of 238 million euros in order to avoid being sued for “aggravated laundering of tax evasion” between the years of 2005 and 2012. Together with the Office of the National Financial Prosecutor, it executed a legally binding agreement (CJIP) in the public interest (PNF). The technique makes it possible for businesses to pay a fine for acts of bribery or laundering money obtained via tax evasion without having their guilt formally established. In the year 2017, HSBC became the first bank to sign an agreement of this kind. It was accused of the same problems as Credit Suisse, and as a result, it settled with France for 300 million euros.
April 2016 marked the beginning of the investigation for Credit Suisse. The office of the financial prosecutor opened an inquiry at the time after receiving reports in the area of mutual financial assistance for laundering tax evasion and illegal bank solicitation. The reports were related to the framework of the investigation. Following an investigation, it was discovered that 5,000 French customers had kept a Credit Suisse account for a significant number of years without declaring it to the French authorities in charge of taxation. The value of the assets that were kept a secret was 2 billion euros.
The Very Last Resort Strategy
In the United States, Credit Suisse had previously paid a fine relating to an incident that occurred in the past one week ago. In order to settle a dispute with the American judicial system over securities that were backed by mortgages, she consented to make a payment of 495 million dollars.
This week will be critical for the once-proud symbol of Swiss financial stability, which is currently in the middle of a crisis. After a string of missteps, he is going to reveal his “last chance” strategy on Thursday. This plan is intended to get him back on the water.