Swiss financial watchdog raps Credit Suisse for non-compliance to Swiss anti-money laundering processes

FINMA’s investigation has focused on Credit Suisse failing to combat corruption in cases linked to soccer body FIFA and Venezuelan and Brazilian state oil companies.

On Monday, Swiss finance industry watchdog FINMA stated, the operations of Swiss multinational investment bank and financial services company Credit Suisse would now be overseen by an independent monitor.

The development comes in the wake of Credit Suisse failing in its duty to combat corruption in cases linked to soccer body FIFA and Venezuelan and Brazilian state oil companies.

In a separate development, FINMA also determined that Credit Suisse fell short of its obligation to fight money laundering while managing “a significant business relationship for the bank with a politically exposed person”, said FINMA in a statement.

Rather than discipline a relationship manager who repeatedly breached Credit Suisse’s compliance regulations for years, FINMA observed that Credit Suisse rewarded him with positive reviews and high payments.

FINMA has ordered improvements in the bank’s anti-money laundering process.

It also said, it was putting in place an independent monitor so as to ensure that Credit Suisse follows through with its recommended measures and prevents a repetition of the incidents it investigated, which involved Petrobras, FIFA, Petróleos de Venezuela, S.A.

“The identified shortcomings occurred repeatedly over a number of years, mainly before 2014,” said FINMA. “An above-average number of faults were discovered in business relationships opened by the former Group subsidiary Clariden Leu AG.”

Credit Suisse responded by saying FINMA’s investigations had discovered “legacy weaknesses”, and it had already taken steps to improve compliance.

Significantly, Credit Suisse disclosed it had not been fined or ordered to disgorge profits.

“Implementing a culture of compliant growth at Credit Suisse is our highest priority and it is an individual and collective responsibility that we take extremely seriously,” said Credit Suisse in a statement. “We will continue to work closely with FINMA to complete the changes that are underway and implement additional measures”.



Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

Tags: , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: