Cré dit Agricole to Pay $99 Million Penalty to U.S. Department of Justice

PARIS—The Swiss unit of French bank Cré dit Agricole SA on Thursday said it has agreed to pay a $99 million penalty to the U.S. Department of Justice as part of a nonprosecution agreement over its conduct toward U.S. taxpayers.

The penalty stems from an agreement sealed between Switzerland and the U.S. in August 2013 that allowed the U.S. government to investigate the business conduct of Swiss banks toward U.S. taxpayers who hadn't met all of their tax obligations in the U.S.

Under the agreement, the U.S. cracked down on Swiss banks it suspected of helping American taxpayers conceal income from the U.S. authorities. Last year, the U.S. government sent documents to banks requiring them to hand over data on hidden American accounts in exchange for nonprosecution agreements.

Cré dit Agricole said it never intended to develop the business of supplying financial services to U.S. taxpayers who didn't declare accounts to the U.S. tax authorities.

However, the bank said it couldn't rule out the possibility that some customers may not in the past have informed the bank of their status as "U.S. persons" or "entirely fulfilled their tax obligations."

Cré dit Agricole said the penalty was covered by its reserves and would have no impact on its 2015 balance sheet.

The French bank said it would cooperate fully with the U.S. authorities.

A number of banks operating in Switzerland have come under U.S. Justice Department investigation following the 2013 agreement.

In May of last year, Zurich-based Credit Suisse Group AG settled its own U.S. probe by pleading guilty to aiding American tax evasion, and agreeing to pay $2.6 billion.

Separately, Cré dit Agricole in October agreed to pay $787 million to resolve U.S. allegations it handled illegal transactions involving Iran, Sudan, Myanmar and Cuba.

Write to Inti Landauro at inti.landauro@wsj.com

(END) Dow Jones Newswires

December 31, 2015 10:45 ET (15:45 GMT)

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