Credit Suisse pleads guilty to criminal charge, will pay $2.6 billion in penalties

Andrew Burton/Getty Images

Catherine Garcia, The Week US's avatar
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Credit Suisse pleads guilty to criminal charge, will pay $2.6 billion in penalties
(Image credit: Andrew Burton/Getty Images)

On Monday, Credit Suisse pleaded guilty to criminal conspiracy, agreeing to pay $2.6 billion in penalties. The Swiss banking behemoth acknowledged that it aided thousands of clients from the United States who opened and maintained secret offshore accounts, in order to hide income and assets from the IRS, U.S. Attorney General Eric Holder said.

Holder added that the bank tried to cover its tracks by destroying records, using offshore credit and debit cards, and concealing transactions, USA Today reports. $1.13 billion of the money is a federal fine, about $670 million is restitution to the IRS, $100 million will be paid to the Federal Reserve's Board of Governors, and $715 million will go to the New York banking regulator.

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Catherine Garcia, The Week US
Catherine Garcia, The Week US

Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.