Strategy
Credit Suisse Takes Out Newspaper Ads In Response To Tax Probes
Despite initially being secretive about the matter, Credit Suisse has now responded to allegations it is at the epicenter of worldwide probes into tax evasion and money laundering.
Credit Suisse, the Swiss lender which exited US private banking in 2015 but which retains important business links in the country, has become embroiled in a five-country tax evasion and money laundering probe. Over the weekend, the bank took out several UK newspaper advertisements on Sunday in response to these stories.
The Swiss banking giant's two-page advertisements underlined the firm's “zero tolerance policy” on tax evasion. They also included seven bullet points that responded to the investigations disclosed last week, and said a 2011 compliance review caused it to extinguish relationships with clients who did not prove they had paid their taxes.
“This led to very significant asset outflows as we do not want to do business with clients who are unwilling to provide the required evidence,” stated the advertisements. “Credit Suisse applies a strict zero tolerance policy on tax evasion.”
The investigations come as the chief executive of Switzerland's second-largest lender, Tidjane Thiam, looks to gear the firm's business model more towards wealth management in a bid to replenish capital depleted by large fines for compliance issues.
In a statement posted on its website, Credit Suisse said: “We have made significant investments to implement the new international standard 'automatic exchange of information' in tax matters for our European locations effective April 1, 2017, which will foster even stronger transparency internationally.”
Despite the firm's supposed enhancements to its tax measures, tax authorities last week visited its offices in London, Paris and Amsterdam after they were tipped off about millions of dollars of undeclared assets linked to accounts held with the bank.
In a statement, prosecutors said the assets were connected to 3,800 Dutch-linked accounts. Subsequently, raids were underway in France, Germany, the UK and Australia, which saw authorities seize paintings, gold, cash, a luxury car and jewellery.
Investigations are expected to continue for several weeks, prosecutors say.
