UBS Group AG has agreed to pay $511 million (€452 million) to settle a US tax investigation into Credit Suisse, which it acquired in 2023. UBS said it had no involvement in the underlying misconduct and reiterated its "zero tolerance for tax evasion".
The two-year investigation, initiated before the merger, found that Credit Suisse assisted wealthy Americans in hiding more than $4 billion (€3.5 billion) from the US Internal Revenue Service (IRS) through at least 475 offshore accounts, according to the US Department of Justice (DoJ).
Details of the plea
According to the plea agreement, Credit Suisse Services AG pleaded guilty to conspiring to aid in the preparation of false income tax returns and will pay $371.9 million (€328.8 million) as part of the settlement.
“Credit Suisse AG, which had ultra-high-net-worth and high-net-worth individual clients globally, conspired with employees, US customers, and others to wilfully assist in concealing ownership and control of assets held at the bank,” said the DoJ.
In addition, Credit Suisse AG entered into a non-prosecution agreement in relation to US taxpayers whose accounts were booked in its Singapore unit and agreed to pay a further $138.7 million (€122.6 million).
The DoJ noted that “between 2014 and June 2023, Credit Suisse AG Singapore held undeclared accounts for US persons, which Credit Suisse AG Singapore knew or should have known were US-related, with total assets valued at over $2 billion”.
UBS said it expects to trim costs as it will no longer need to set as much money aside to manage risks related to Credit Suisse. Nonetheless, it will record a charge in the second quarter relating to the resolution.
The settlement requires both Credit Suisse Services AG and UBS AG to “cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding US-related accounts,” the DoJ added.
Senate probe vindicated
The probe was launched in 2023 after the US Senate Finance Committee found that Credit Suisse had helped wealthy US clients conceal assets offshore.
“This settlement fully vindicates the findings of my investigation, which exposed how Credit Suisse continued hiding more than $700 million offshore for rich Americans, violating their deal to avoid prosecution,” said Senator Ron Wyden, the committee’s ranking member.
“The ultra-wealthy and shady Swiss bankers shouldn’t get a free pass to cook up offshore tax evasion schemes while regular Americans are paying their fair share.”
Integration of Credit Suisse remains on track
UBS, Switzerland’s largest bank, acquired Credit Suisse for CHF 3 billion in March 2023 after its rival collapsed amid mounting losses on US government bonds triggered by the Federal Reserve’s aggressive interest rate hikes. Credit Suisse had already been weakened by a series of scandals, including allegations of money laundering, corruption, and tax evasion.
UBS has benefited from the acquisition, aided by the Swiss government, as reflected in improved earnings in its global wealth management and investment banking divisions. In its February report, UBS stated that the integration of Credit Suisse remains on track.
"We are confident in our ability to substantially complete the integration by the end of 2026, achieve our financial targets, and fulfill our growth initiatives," said CEO Sergio Ermotti.
UBS shares have declined by 8% year-to-date amid weaker growth prospects linked to the Trump administration’s tariffs. However, the resolution of the Credit Suisse tax probe is expected to ease investor concerns after years of legal uncertainty.
