Credit Suisse 'target' in US tax evasion probe

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Credit Suisse would be the second Swiss banking giant to come under the lens of the US after rival UBS AG settled similar allegations in 2009.

"... on July 14, 2011, Credit Suisse received a letter notifying it that it is a target of the US DoJ (Department of Justice) investigation," Credit Suisse said on Friday.

In a brief statement, the banking major said the probe concerns historical private banking services provided on a cross-border basis to US' citizens.

The latest development comes at a time when the influential G-20 grouping that includes India, is exploring ways to bring back black money stashed away by their respective citizens in offshore accounts.

Further, Swiss banking industry -- well known for their secrecy practices -- has come under intense global pressure amid G-20 nations' crack down on tax

"Subject to our Swiss legal obligations, we will continue to cooperate with the US authorities in an effort to resolve these matters," Credit Suisse noted.

The banking major had earlier announced that it was responding to requests for information -- including subpoenas -- in an investigation by the DoJ and other US authorities.

"It has been reported that the US authorities are conducting a broader industry inquiry," Credit Suisse noted.

Earlier this year, US authorities had charged four bankers, who had worked at Credit Sussie, for allegedly helping rich Americans to evade taxes.

The US authorities have been aggressively pursuing tax evaders in recent years, that also saw UBS in 2009 agreeing to pay a penalty $780 million as well as disclose account details of thousands of Americans who allegedly evaded tax.

Interestingly, the UBS case turned out to be a watershed moment for the Swiss banking industry. Since the US-UBS settlement, many other nations including India, started exploring ways to seek details of secret bank accounts held by their citizens.