Multi-million dollar fine and reprimand for Swiss Credit Suisse

Released on 20.10. 2021

  • The major Swiss bank Credit Suisse has been fined millions. Photo: Gaetan Bally

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Two affairs have cast a bad light on the major Swiss bank Credit Suisse. It’s about corruption and shadowing. Now there are complaints and a hefty fine. 2021

Bern / Washington (dpa) – The Swiss bank Credit Suisse has received a heavy fine for dubious transactions with Mozambique. In addition, the supervisory authority issued complaints because employees were spied on.

In the Mozambique case, they accepted a settlement in the United States and Great Britain with fines totaling around 475 million dollars (408 Million euros), as the US Department of Justice and the Securities and Exchange Commission announced on Tuesday (local time) in Washington. Credit Suisse (CS) said it was satisfied with being able to draw a line under the proceedings.

The British CS subsidiary was accused of 2013 to 2016 involved in a comprehensive bribery plot. Specifically, it is about state-guaranteed large loans and bonds, which are supposed to be used to finance a fishing project in Mozambique, among other things, the authorities said. In fact, corrupt government representatives of the Southeast African state were bribed. In addition, Credit Suisse investment bankers are said to have enriched themselves. The authorities accused Credit Suisse of misleading investors and a lack of internal controls.

The Swiss Financial Market Authority (Finma) issued requirements that Credit Suisse must now meet in new lending business with financially weak countries . The parent company of the bank had not fulfilled its duty of supervision in risk management.

The shading of employees by the bank was 2019 came to light. The top banker Iqbal Khan, who wanted to switch to competitor UBS, discovered private detectives who had been hired by his ex-employer, and a scuffle broke out on a street. According to the Finma, this was not the only case. From … to 2019 seven observations were planned and, for the most part, also carried out, also to shadow “third parties abroad”. Finma found serious violations of the duty of supervision and, among other things, decreed that planned shading in the future must be approved by the top management level. Two CS employees were reprimanded, and a review process was opened against three others.

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