Credit Suisse is to pay German prosecutors
€150m ($206m) in an out-of-court settlement to end investigations
into whether its employees assisted German-based clients evade
tax.

The figure dwarfs the €50m one-off fee Swiss
private bank Julius Baer paid German authorities in April to end
similar investigations into tax evasion.

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The investigations were prompted by
disclosures from German clients and data acquired and collected by
authorities on undeclared assets held by Credit Suisse and Julius
Baer.

 

Credit Suisse still under scrutiny in
US

Despite the German agreement, Credit Suisse is
still facing substantial pressure from US regulators who are
looking into the Swiss bank’s cross-border private banking services
to US citizens.

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Credit Suisse said that the German settlement
will be paid in the third quarter. It also welcomed the outcome,
adding “a complex and prolonged legal dispute has been avoided,
with an agreed solution that provides legal certainty”.

In Germany, the Swiss bank operates in 12
locations with 750 staff.

 

Bankers association welcomes
deal

A Swiss Bankers Association spokesperson told
PBI it welcomed the agreement between Credit Suisse and
German authorities as it marked the end of the prosecution.

Furthermore, the tax agreement signed by
Switzerland and Germany in August stops any future prosecutions
against Swiss banks and bankers.

“Clients are now compliant with the tax
matters in Germany. There is no more need to prosecute any banks on
tax matters,” the SBA spokesperson said.