Credit Suisse to pay US$234M to settle French tax fraud case



French prosecutors mentioned Monday that Credit Suisse has agreed to pay 238 million euros (US$234 million) to settle tax fraud allegations, the most recent blow for the embattled Swiss financial institution.

The financial institution will pay 123 million euros in fines and 115 million in damages and curiosity to France, whose investigators will shut an inquiry launched in 2016 on attainable expenses of aggravated tax fraud laundering and unlawful soliciting, French prosecutor Jean-Francois Bohnert mentioned in a press release.

French media have reported that Credit Suisse representatives courted rich French prospects to persuade them to open accounts with the financial institution that weren’t declared to French tax authorities.

Credit Suisse says it does not acknowledge legal legal responsibility within the settlement.

“The financial institution is happy to resolve this matter, which marks one other vital step within the proactive decision of litigation and legacy points,” the corporate mentioned in a press release.

It comes only a week after Credit Suisse agreed to pay $495 million in a U.S. settlement over a yearslong dispute tied to mortgage-backed securities, an funding automobile that performed a central position within the 2008 monetary disaster.

The settlements are simply the most recent of a string of woes for Credit Suisse, together with unhealthy bets on hedge funds and a spying scandal involving UBS.

A Swiss courtroom fined the financial institution greater than $2 million in June for failing to stop cash laundering linked to a Bulgarian legal gang greater than 15 years in the past.

CEO Thomas Gottstein introduced in July that he was resigning after 2 1/2 years within the job because the financial institution posted a web lack of 1.6 billion Swiss francs (about $1.7 billion) within the second quarter.


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