Milan prosecutors are investigating Credit Suisse on suspicion of money laundering and tax evasion over billions of euros of insurance policies sold Italian clients and used to shield funds from authorities, people with knowledge of the case said.
Bloomberg News reports that starting in 2005, Credit Suisse allegedly helped about 4,000 clients protect as much as $8.9bn of funds that were earned illicitly, mainly as income that was undeclared to Italian tax authorities, said the people, who asked not to be identified because the probe isn’t public.
Clients were sold insurance policies issued by Lichtenstein and Bermuda subsidiaries of the bank, the people said. The scheme enabled them to skirt a Swiss withholding tax on deposits in foreign-held accounts while retaining access to their cash, which they could still manage from Swiss accounts, said the people.
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