Credit Suisse Group AG will pay $196 million to settle charges that it violated federal securities law by providing cross-border financial services for U.S. clients without registering with regulators.
The U.S. Securities and Exchange Commission say the Swiss bank provided these services to thousands of U.S. clients over a seven-year period. Regulators say the bank began to curb this practice in 2008 after a civil and criminal investigation into similar conduct by Swiss-based UBS.
Following a U.S. Department of Justice criminal tax investigation, UBS had formally announced in 2008 that it would cease providing banking services to U.S. clients through its non-U.S. regulated entities. In 2009, U.S. authorities fined UBS $780 million for helping U.S. citizens avoid paying taxes.