Credit Suisse must pay fines and compensation of 21 million Swiss francs, or $22 million, for lax controls that allowed an employee of the bank to help a Bulgarian drug ring launder money, Switzerland's Federal Criminal Court said Monday
Credit Suisse Group AG office building in Geneva, Switzerland, May 31, 2022.
Image: Jose Cendon/Bloomberg via Getty Images
Credit Suisse must pay fines and compensation of 21 million Swiss francs, or $22 million, for lax controls that allowed an employee of the bank to help a Bulgarian drug ring launder money, Switzerland’s Federal Criminal Court said Monday.
The ruling was the latest setback for the bank, which issued a profit warning this month and has been suffering from boardroom turmoil.
Credit Suisse, based in Zurich, said it would appeal the decision, which stems from the actions of a bank employee in 2007 and 2008. The employee, who was not named, helped the cocaine-smuggling ring make bank transfers “despite concrete indications regarding the money’s criminal origins,” the court said in a statement.
During court hearings in February, the Credit Suisse employee testified that the bank was aware that the money — sometimes delivered in suitcases stuffed with cash — came from a gang that had been tied to murders and large-scale smuggling of cocaine from South America, Reuters reported.
Credit Suisse shared responsibility for the money laundering because the bank’s management, legal team and compliance department failed to ensure that anti-money-laundering rules were being followed, the court said.
©2019 New York Times News Service