Swiss bank UBS fined €5 million for helping clients conceal savings from tax authorities

Swiss bank UBS has been fined 5 million euros by the Dutch Public Prosecution Service (OM). Credit Suisse, which was acquired by UBS in 2023, spent years helping clients conceal undeclared savings from Dutch tax authorities, according to prosecutors.

The case involves clients who held assets in Swiss bank accounts to keep them out of the Dutch tax authorities’ sight. Credit Suisse allegedly assisted in the filing of 80 incorrect tax returns between 2005 and 2015 on behalf of 12 different clients.

The Dutch Fiscal Intelligence and Investigation Service (FIOD) launched an investigation into the practices in 2016 under the direction of the Public Prosecution Service.

Credit Suisse assisted the clients in several ways, including allowing them to use code names when communicating with the bank. The bank also helped set up companies in countries that did not exchange tax information with the Netherlands.

More clients were found to have submitted incorrect tax returns, according to the OM. However, to keep the investigation manageable, the criminal case focused only on the tax returns of 12 clients. The Dutch Tax Administration separately pursued the wider group of clients through additional tax assessments and fines.

The OM also noted that the Swiss bank has already paid similar fines in other countries. It considers the risk of the bank repeating the misconduct to be limited, saying Credit Suisse stopped serving clients who concealed assets from tax authorities and changed its policies.

The fact that Credit Suisse no longer exists as an independent entity also contributed to the decision to settle the case with the 5 million euro fine.

UBS said in a statement that it will pay the 5 million euros to settle the case. The Swiss bank said the agreement with prosecutors does not constitute an admission of criminal liability. UBS also stressed that it has a zero-tolerance policy toward tax evasion. The bank said it is pleased that the long-running matter has now been resolved.