Eight years after Credit Suisse paid a $2.6 billion tax-evasion settlement and pledged to tackle the issue, the Justice Department is investigating whether the bank continued to help US-based clients hide assets.
Investigators are examining whether Credit Suisse aided U.S.-based account holders, specifically those with South American passports. According to sources familiar with the matter, those customers may not have disclosed assets totaling hundreds of millions of dollars to the IRS. According to AdvisorHub, court records indicate that former bank employees blew the whistle on Credit Suisse.
The investigations continue to add pressure to Credit Suisse as it seeks to revamp its risk culture. The bank's stock has declined significantly since the scandals surrounding Greensill Capital and Archegos Capital Management early last year.
Credit Suisse has denied any improper conduct and is cooperating with U.S. authorities. At this time, it is unclear whether the Justice Department will take action against the bank. The Senate Finance Committee also is preparing a report discussing how the bank vetted dual citizens.
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