Credit Suisse is accused of not doing enough to prevent money laundering. The bank is caught up in a widening criminal probe in Switzerland.
The proceeding was launched in 2015: two independent wealth managers wanted to mask a trading loss with unauthorized transactions. The custodian bank was Credit Suisse, which notified authorities after a client raised alarm.
Now, Swiss prosecutors have widened their investigation to include the bank itself, a source familiar with the matter told finews.asia. The probe centers on whether the bank did enough to try and prevent criminal wrong-doing.
The news comes less than two months after Credit Suisse was rapped for some of the biggest current scandals in Swiss banking: FIFA, the world's governing soccer body; Brazilian state-controlled oil firm Petrobras; and PDVSA, Venezuela's state oil company.
No Charges Levied
In the most recent case, the two Turkish founders of the independent manager have owned up the scheme. No charges have yet been levied towards any people or firms, but criminal investigations into four representatives of TG Investment and four former employees of Credit Suisse are ongoing.
Clients of TG Investment Services suffered a loss of 300 million Swiss francs ($298 million), according to news agency «Bloomberg». The affected clients were mainly wealthy Turks with money in Switzerland.
Credit Suisse Hits Back
«Credit Suisse vehemently denies any criminal responsibility and will vigorously defend itself against the accusations», the bank said. Unlike the co-founders of the wealth manager, the ex-Credit Suisse bankers deny criminal wrong-doing.
For a conviction, prosecutors would have to be able to prove the former bank employees acted unlawfully, as well as illustrate that the bank effectively enabled the crime through a organizational failings, the person said.
