Credit Suisse expected to pay $2.5 billion in tax evasion probe

May 15, 2014, 7:05 PM UTC

FORTUNE — Credit Suisse Group (CS) could end up paying about $2.5 billion to settle a probe over allegations that the bank helped Americans to avoid paying taxes.

As part of that $2.5 billion figure, which is subject to change, about $700 million is expected to be paid to U.S. regulators, and $1.7 billion would go to the Justice Department, according to the Wall Street Journal.

The bank is expected to plead guilty to the allegations, which would be a milestone for regulators and prosecutors investigating financial services firms. Credit Suisse would pay the Federal Reserve about $100 million in fines and approximately $600 million to the New York State Department of Financial Services.

The fact that the Department of Financial Services would receive around six times as much in fines as the Federal Reserve illustrates the importance of the agency both on Wall Street and among other regulators.

A guilty plea from the bank could have widespread implications for the industry, particularly for regulators looking to flex their muscles over the finance industry.

The settlement is expected to be finalized as early as next week.