UBS Prepares To Settle Tax Evasion Violations By Credit Suisse: Report

Investment bank and financial services company UBS Group AG UBS is said to be preparing to pay a significant amount, potentially in the hundreds of millions, to settle claims related to violations by Credit Suisse Group.

The settlement could be finalized as early as this week, according to a report from the Wall Street Journal.

These violations stem from Credit Suisse’s failure to adhere to a prior agreement with the U.S. Justice Department concerning American clients evading taxes.

UBS agreed to acquire its beleaguered peer Credit Suisse in 2023, creating a business with more than $5 trillion in total invested assets.

In 2023, the Senate Finance Committee’s findings of a two-year investigation uncovered major violations of a 2014 plea agreement by Credit Suisse with the Department of Justice for enabling tax evasion by thousands of wealthy U.S. individuals.

In 2014, the bank pleaded guilty and agreed to pay a total of $2.6 billion, with $1.8 billion to the Department of Justice for the U.S. Treasury, $100 million to the Federal Reserve, and $715 million to the New York State Department of Financial Services.

The report noted that the U.S. Justice Department has long considered how best to hold Credit Suisse accountable following its acquisition by UBS in 2023.

UBS had set aside approximately $4 billion in provisions to reflect possible outflows from litigation, regulatory, and similar matters.

Price Action: UBS shares closed at $32.47 on Wednesday.

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