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| Reuters/Denis Sinyakov |
German and
French tax authorities have searched the homes of wealthy clients and the
offices of major Swiss banks UBS and Credit Suisse in an ongoing inquiry into
tax invasion and money-laundering.
German
police in Bochum and Duesseldorf raided the homes of Credit Suisse bank
customers, suspected in evading taxes. Currently about 5000 German clients of
Swiss banks are under investigation over Bermuda-based life insurance products
used by some wealthy clients to hide money. Last year Credit Suisse paid €150
million ($183.83 million) to German tax authorities to settle an inquiry over
allegations the bank and its employees helped Germans dodge tax.
In France
detectives raided the offices of UBS in three major cities: Lyon, Bordeaux, and
Strasbourg. The move came as French President Francois Hollande announced plans
to increase taxes on businesses and the wealthiest households to reduce the
budget deficit.
In 2009 US
and Swiss authorities struck a deal, forcing UBS to pay a fine and release the
names of thousands of American clients, suspected of tax evasion. US
authorities are still probing Swiss banks such as Credit Suisse and Julius Baer
over tax offences.
Swiss banks
are known for maintaining a high standard of secrecy to protect clients since
1934, when criminal penalties were imposed for revealing a client's identity.
It made Switzerland a safe haven for wealthy people around the world to stash
their fortunes. However, the financial crisis forced European as well as US
authorities to focus on tax evasion in order to bring money back home.
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