Tuesday, December 5, 2023 | Back issues
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Credit Suisse Ordered |to Pay U.S. $1.8 Billion

(CN) - Credit Suisse will pay $1.8 billion in fines and restitution after pleading guilty today to helping wealthy U.S. citizens avoid paying taxes.

The guilty plea was accepted this morning by Chief U.S. District Judge Rebecca Beach Smith of the federal court in Norfolk, Va. The payment includes a $1.14 billion criminal fine, and a $667 million payment to the Internal Revenue Services.

"Today's sentencing is yet another example of what happens to those who help offshore tax evaders," said IRS Commissioner John Koskinen in a written statement.

Credit Suisse admitted in May that it helped clients conceal assets in undeclared bank accounts to deceive the IRS and state tax authorities. In a plea agreement, the bank agreed to pay out a total of $2.6 billion, of which today's $1.8 billion fine and restitution order is just a portion.

The May agreement also includes $100 million that to be paid to the Federal Reserve and $715 million to the New York State Department of Financial Securities.

Judge Smith ordered the bank to pay the fine within a week, but Credit Suisse still faces potential repercussions from its actions. It is scheduled to appear at a hearing before the U.S. Department of Labor in January, where the agency will decide whether the bank's guilty plea precludes it's managing the retirement funds in the U.S.

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