Credit Suisse Facing Tax Probe Across Five Countries

The turnaround at Credit Suisse in 2017 is facing scrutiny after a probe was recently opened into possible tax evasion and Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term across the bank’s global operations. The latest development threatens to derail the recent optimism at the lender, which recently saw its bonus pool expanded.

Credit Suisse’s 2017 fortunes have on the surface been a departure from its previous year. The group incurred a sizable $2.4 billion loss in 2016, with a number of headwinds pointing to more of the same in 2017. Still, the group’s CEO Tidjane Thiam touted a more optimistic stance, with a wide-ranging recovery plan seeming to pay dividends.

While Credit Suisse’s 2016 year-end earnings definitely cast a shadow on the lender, a fact that was further exacerbated by an additional round of cuts, these losses were restricted to jobs in its Asian equities desks, as well as another 5,500 positions forthcoming.

A new investigation into its global operations could dramatically change its outlook and fortunes at a time when its recovery plan can ill afford any setbacks. According to a Bloomberg report, investigators are now in the midst of a probe that is spanning five countries, extending to thousands of accounts.

The investigation was reportedly triggered by a tip to the FIOD, the criminal investigation service of the Dutch Tax and Customs Administration. However, an investigation had been originally launched back in 2016 across five countries, and could see results or actions in the next few weeks.

It is unclear what, if anything, Credit Suisse has done wrong, though the group has been fined in the past for tax Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term. A large settlement would definitely weigh upon its outlook heading into H2 2017.