Credit Suisse: ads newspapers to underline zero tolerance

Credit Suisse, surprised by a five-country tax evasion and money laundering investigation, said it has a “zero tolerance policy” on tax evasion in advertisements taken out in the Sunday Times, Sunday Telegraph and Observer, U.K. newspapers on Sunday.

The Swiss bank’s two-page ads, which included seven bullet points in response to the probes disclosed last week, also said a 2011 internal compliance review caused it to terminate relationships with clients who didn’t prove they paid their taxes.

“This led to very significant asset outflows as we do not want to do business with clients who are unwilling to provide the required evidence,” said the ads. “Credit Suisse applies a strict zero tolerance policy on tax evasion.”

Although unusual, it is not unheard of for large banks to make a statement or issue an apology via a newspaper advert in order to limit the damage negative coverage could have on their public image. 

The probes come as Chief Executive Officer Tidjane Thiam is trying to focus Credit Suisse on wealth management and boosting capital depleted by fines for past misbehavior.
Two people were arrested in the Netherlands as part of the investigation, and millions of euros worth of cash, gold paintings and other assets were seized. Iqbal Khan, head of international wealth management at the Swiss bank told Bloomberg on Friday that to his knowledge, the probes target those outside of the bank. None of the assets seized came from Credit Suisse.

Credit Suisse, Switzerland's second-biggest bank, in 2014 pleaded guilty and was fined $2.6 billion by U.S. authorities over charges it helped wealthy Americans evade taxes. It has also settled tax dodging cases in Italy and Germany.