The Swiss lender refused to admit to criminal liability in the matter. Credit: Thomas Wolf/commons.wikimedia.org.

Swiss banking giant Credit Suisse has agreed to shell out €238m in penalty to put an end to investigation in France over tax fraud charges.

In this regard, the bank has confirmed an agreement with Parquet National Financier (PNF) to settle a case relating to cross-border private banking services.  

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As part of the settlement, Credit Suisse will pay a public interest fine that includes a profit disgorgement of €65.6m and an additional amount of €57.4m.

The bank will also pay €115m in damages to the French State.

In a statement, Credit Suisse said: “The bank is pleased to resolve this matter, which marks another important step in the proactive resolution of litigation and legacy issues.”

However, the Swiss lender refused to admit to criminal liability in the matter.

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According French prosecutor JeanFrançois Bohnert, the latest settlement is in connection to a case that dates back to 2016, wherein investigators sought to probe alleged aggravated tax fraud laundering and illegal soliciting.

Credit Suisse representatives reportedly favoured affluent French customers to encourage them to open accounts with the bank. Further, these accounts were not declared to tax authorities concerned.

The latest settlement comes close on the heels of the bank’s move to pay $495m to resolve a dispute in the US over mortgage-backed securities.

Further, in September this year, Credit Suisse reportedly agreed to a $32.5m preliminary settlement to end a lawsuit that accused the bank of deceiving shareholders over risky investments in collapsed firms like Archegos Capital Management and Greensill Capital.