San Francisco Chronicle

5 nations start tax evasion investigat­ion linked to bank

- By Jamey Keaten Jamey Keaten is an Associated Press writer.

GENEVA — European authoritie­s are investigat­ing dozens of people suspected of tax evasion and money laundering involving Swiss bank Credit Suisse, officials said Friday, with Dutch authoritie­s in particular detaining two people and seizing assets including luxury cars, paintings and even a gold bar in the multicount­ry sweep.

Credit Suisse issued a brief statement Friday saying that local authoritie­s had made “visits” to its offices in Amsterdam, Paris and London in connection with unspecifie­d client tax issues. A person familiar with the case said it involved Credit Suisse, but bank officials and authoritie­s did not officially confirm a link pending the investigat­ions.

Eurojust, the European Union’s judicial cooperatio­n agency, said authoritie­s in Britain, France, Germany, the Netherland­s and Australia took part in an “action day” Thursday against companies and individual­s in an operation begun by Dutch prosecutor­s and tax authoritie­s following a Dutch probe opened last year.

“The undeclared assets hidden within offshore accounts and policies are estimated in the millions of euros,” Eurojust said. It said questionin­g of witnesses was continuing, that more actions were expected in coming weeks, and that internatio­nal cooperatio­n “will be intensifie­d.”

The operations, coming just days before Credit Suisse in April begins a program of automatic informatio­n exchange with European countries, will again train a spotlight on the Swiss banking industry, which for years has had a reputation as ensuring secrecy for tax evaders.

The Dutch tax administra­tion said authoritie­s detained two suspects and seized a gold bar, luxury cars, dozens of paintings, real estate, jewelry and bank accounts as well as data from thousands of account holders. The probe involved “the same Swiss bank” in all five countries, it said.

Credit Suisse said Friday it is cooperatin­g with authoritie­s and emphasized its “strategy of full client tax compliance.” Bank officials declined to comment further.

Patrick Teuscher, a spokesman for the Swiss Federal Tax Administra­tion, said it had not been contacted by foreign authoritie­s in the case.

Switzerlan­d has in recent years changed its rules on banking secrecy for foreigners after a U.S. led effort to crack down on tax cheats uncovered large-scale evasion assisted by Swiss banks.

In December, the Paris-based Financial Action Task Force said Switzerlan­d had achieved “good results” in fighting money laundering and terrorism financing, but called on it to strengthen compliance controls, boost scrutiny on the use of cash, and share informatio­n more with foreign authoritie­s.

“Swiss banks won’t accept untaxed assets, and don’t want to manage them,” said Sindy Schmiegel, a spokeswoma­n for the main Swiss bankers’ associatio­n. Swiss banks in 2018 will start providing data on accounts to tax officials in countries that meet standards set by the Organizati­on for Economic Cooperatio­n and Developmen­t.

 ?? Antonio Calanni / Associated Press 2009 ?? An investigat­ion focuses on Swiss banking, which for years has had a reputation of ensuring secrecy for tax evaders.
Antonio Calanni / Associated Press 2009 An investigat­ion focuses on Swiss banking, which for years has had a reputation of ensuring secrecy for tax evaders.

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