A Credit Suisse unit has admitted guilt to U.S. charges of helping ultra-wealthy Americans dodge taxes and will pay over US$510 million in fines and penalties, according to the U.S. Department of Justice on Monday (May 5).

Credit Suisse Services pleaded guilty and received sentencing on Monday for conspiring to conceal more than US$4 billion from the U.S. Internal Revenue Service through at least 475 offshore accounts, the department said.

The unit agreed to pay a total of US$510,608,909 in penalties, restitution, forfeiture, and fines, the press release noted.

This guilty plea follows the bank’s involvement in maintaining accounts in Singapore for U.S. taxpayers who used offshore banking to avoid U.S. tax obligations and reporting laws.

“Among other fraudulent acts, bankers at Credit Suisse falsified records, processed fictitious donation paperwork, and serviced more than US$1 billion in accounts without documentation of tax compliance,” the Justice Department stated.

“In doing so, Credit Suisse AG committed new crimes and breached its May 2014 plea agreement with the United States.”

Back in 2014, Credit Suisse became the largest bank in two decades to plead guilty to a U.S. criminal charge, agreeing to pay a US$2.5 billion fine for its role in helping Americans evade taxes through a long-running conspiracy.

Before this week’s settlement, the U.S. Senate Finance Committee determined in 2023 that Credit Suisse had violated the 2014 agreement by continuing to support tax evasion and hiding over US$700 million from federal authorities.

UBS confirmed on Monday that Credit Suisse Services pleaded guilty to one count of conspiracy to aid and assist in the preparation of false income tax returns.

UBS clarified it had no role in the misconduct, which took place before it acquired Credit Suisse in 2023.

The Swiss banking group had already included the issue as a contingent liability during the acquisition and now expects part of that liability to be released as a credit in the second quarter.

At the same time, UBS anticipates recording a charge for the payment in the same quarter.

Alongside the guilty plea and financial penalties, Credit Suisse Services entered into a non-prosecution agreement. This agreement requires both Credit Suisse and UBS to assist with ongoing investigations and proactively report any new information tied to U.S.-related accounts, the Justice Department said.