Credit Suisse Tax Inquiry Puts Spotlight on Private Bank Model
ByCredit Suisse knows the importance of keeping its nose clean.
The Swiss bank confirmed Friday that its offices in several countries had been raided by the authorities in relation to possible tax evasion. The bank also stressed its “strict zero tolerance policy,” pointing to a review that started in 2011 to purge any questionable clients. A guilty plea and $2.6 billion settlement with United States authorities over tax evasion in 2014 have given the bank good reason to be scrupulous. Such raids act more as a reminder than a warning.
Swiss private banks face multiple kinds of risk, including past and future. The first comes from the recent 180-degree reversal in public opinion about the industry’s function. While the secrecy it used to peddle was once prized, such opacity is now associated with corruption, underhanded dealing and tax evasion. Banks have worked hard to scrub themselves of past wrongdoings, but after decades of efforts to mask their clients’ true intentions, there is a high chance that problems may have been overlooked…
Credit Suisse Tax Inquiry Puts Spotlight on Private Bank Model
