US authorities are investigating several banks in connection to sanctions against Russia. Credit Suisse and UBS are among them.
UBS and Credit Suisse are said to be among a group of banks facing US Department of Justice scrutiny as part of an investigation into whether bank employees helped Russian oligarchs evade sanctions, according to a «Bloomberg» story (behind paywall) citing people familiar with the proceedings.
New Wave of Subpoenas
The requests for information were sent before the crisis at Credit Suisse which led to its forced takeover by UBS. Subpoenas were also been sent to employees of some major US banks.
Screening Clients
Before Russia invaded Ukraine, Credit Suisse was managing extensive funds for wealthy Russians. When it shut down its business with Russian private clients last May, it managed about $33 billion, around 50 more than UBS. That was down from a high of over $60 billion from which Credit Suisse generated some $600 million in fees. 50 percent more than UBS, according to Bloomberg.
The US Justice Department investigation is targeting bank employees who dealt with clients under sanction and how the clients were screened, according to the report. They could face further scrutiny to determine whether laws were broken.
Both Credit Suisse and UBS declined to comment.
