German prosecutors raid Credit Suisse offices

Frankfurt, Germany and Zurich, Switzerland (News Today) - German prosecutors on Wednesday staged raids on more than a dozen Credit Suisse offices in connection with an inquiry into whether employees of the Swiss bank had helped clients to evade taxes.

The raids are the latest stage of an inquiry that prosecutors in Düsseldorf said was based on data stored on CDs and offered this year to authorities in the state of North Rhine-Westphalia. Searches involving 150 prosecutors and tax officials took place in 13 locations across Germany linked to the Swiss bank's German subsidiary.

A statement from prosecutors said they did not know the names of any Credit Suisse staff who may be involved.

Marc Dosch, a spokesman for Credit Suisse, said: "We can confirm the raids took place. We are working very closely with the German authorities. But as this is an ongoing investigation, we cannot comment further."

Credit Suisse says it has still not been given official notification that the stolen data on the CD covers its customers or stems from one of its employees.

But the bank noted in its first-quarter results statement last April that, based on client contacts, it had "every reason" to believe it would be affected.

As a result, the group instituted formal legal action via the Swiss authorities to launch investigations into the "unknown party or parties" who had perpetrated the theft.

The Düsseldorf prosecutors' investigation -- which started several months ago and is said to involve more than 1,000 individual cases -- is one of a number based upon information allegedly stolen from banks and sold or provided to German authorities. The inquiries have been controversial because they seem to be based on stolen information. Some authorities have refused to purchase data.

In 2008 a data CD from LGT Trust, the then trust subsidiary of LGT, Liechtenstein's biggest bank, was bought by the German intelligence agency, which resulted in a number of prosecutions for tax evasion. Klaus Zumwinkel, Deutsche Post's former chief executive, stepped down after he was caught in the inquiry's net. He later admitted tax evasion and was fined and given a suspended prison sentence.

In many cases, uncertainty over what bank information might be circulating has caused concerned customers to come clean to authorities about their assets held outside Germany to escape possible prosecution.

The inquiries come as authorities round the world have stepped up efforts to curb tax evasion after the financial crisis and have contributed to occasional flare-ups between Germany and its smaller neighbours.

Source : CNN

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