Swiss Court Blocks Credit Suisse From Sending Data on Employee To US

  By John Letzing 
 

ZURICH--A Swiss court has blocked Credit Suisse Group AG (CSGN.VX) from sending data about an employee to U.S. authorities seeking to track down Americans suspected of using accounts in Alpine nation to evade taxes.

The decision by a civil court in Geneva applies to one employee at Credit Suisse, Switzerland's second-largest bank, which has long been cooperating with a U.S. Department of Justice tax evasion probe.

The decision isn't expected to affect Credit Suisse's overall ability to continue cooperating with U.S. authorities, who have applied mounting pressure on the country's longstanding bank secrecy laws.

Douglas Hornung, an attorney representing the unnamed Credit Suisse employee, said he won an interim ruling in January blocking Credit Suisse from transferring the data. That ruling was confirmed by the civil court in Geneva on Friday, Mr. Hornung said.

A spokesman for Credit Suisse declined to comment.

The ruling comes as U.S. pressure on Swiss banks to disclose their past dealings with Americans has stirred widespread concern in Switzerland about potential legal hazards to be faced by bank employees here.

Credit Suisse is one of roughly a dozen Swiss banks that have been actively cooperating with U.S. authorities. Other banks in the group include Julius Baer Group AG (BAER.VX).

The Swiss Parliament recently rejected a proposed plan for a larger number of the country's roughly 300 banks to start providing information about their dealings with U.S. clients--including details about bank personnel who may have aided those clients--to the DOJ.

The proposed plan was designed as a way to spare Swiss banks from potential indictments for aiding American tax evaders, and to bring the ongoing dispute to a close.

Switzerland's largest bank, UBS AG (UBSN.VX), reached a deferred prosecution agreement with the DOJ in 2009. UBS admitted to helping Americans evade taxes and paid a $780 million fine.

Wegelin & Co, Switzerland's oldest bank, was indicted in the U.S. and pleaded guilty earlier this year to helping Americans evade taxes. Wegelin is now defunct.

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