Swiss prosecutors have delivered an indictment against Credit Suisse over its alleged failure to take the necessary steps to prevent money laundering linked to Bulgaria’s Evelin Banev.
Swiss prosecutors claim that Credit Suisse – as well as one of its former relationship managers – did not take all the necessary steps to prevent the hiding and laundering of cash between 2004 and 2008 by alleged drug traffickers.
«Credit Suisse unreservedly rejects as meritless all allegations in this legacy matter raised against it and is convinced that its former employee is innocent,» the bank said in a statement.
Banev Relationship
According to the 500-page indictment, the former Credit Suisse relationship manager, who joined the bank in 2004 and left in 2010, brought in at least one Bulgarian client who was an associate of Evelin Banev – an ex-wrestler nicknamed Bulgaria’s «Cocaine King».
The client allegedly placed suitcases full of cash in a safe deposit box at Credit Suisse before being shot dead as he left a restaurant with his wife in Bulgaria in 2005.
Smurfing Claims
According to prosecutors, the Bulgarian gang allegedly used a method called smurfing whereby laundering is conducted by moving smaller amounts of money that are below the threshold that would trigger internal alerts, including millions of euros in small bills transferred to accounts via safe deposit boxes.
Prosecutors claim that the ex-Credit Suisse relationship manager carried out transactions totaling 146 million Swiss francs ($158 million), including 43 million Swiss francs in cash.
«Our client is being unfairly accused, because Swiss law requires that a person be implicated in order to condemn a bank,» said MANGEAT LLC, which represents the former Credit Suisse employee. «She is innocent, outraged by the accusations. We will plead for her full and complete acquittal.»
Credit Suisse Defense
Credit Suisse plans to underline interactions between its compliance department and Swiss prosecutors as proof of meeting its obligations to combat money laundering and cooperating with prosecutors, according to a «Reuters» report citing unnamed sources.
After Banev’s temporary arrest in April 2007, prosecutors asked Credit Suisse for information on accounts held by Banev and his associates for a request from Bulgaria.
The bank also contacted prosecutors on freezing the accounts after noticing a series of withdrawals but was told not to do so at the time to avoid tipping off the clients. Prosecutors would give Credit Suisse the green light later on, though much of the money had already been withdrawn, the report added.
Compliance Practice
In addition to disputing the illegal origins of the money – Credit Suisse claims that Banev and his associates operated legitimate businesses such as construction, leasing and hotels – the bank also said that the time deposits made were compliant with standard practice at the time.
Separately, prosecutors also filed an indictment against a former relationship manager at Julius Baer over alleged facilitation of money laundering, though it noted that the bank refused to accept a suitcase filled with cash from the defendant.
