That would have been too easy. With the end of Credit Suisse, UBS hoped to also bury the legal proceedings related to the so-called "Bulgaria Connection." However, the court sees the remaining major bank as still accountable.
The June 2022 verdict against Credit Suisse (CS) by the Federal Criminal Court in Bellinzona was something of a small sensation. The bank was fined 2 million Swiss francs ($2.4 million) for deficiencies in handling client relationships with a criminal organization and for failing to properly implement anti-money laundering regulations.
The appeal initiated by the bank was likely an unwelcome legacy for UBS. The bank argued that with the dissolution of CS, the criminal proceedings against it should also be terminated, and requested the case be dismissed.
UBS Inherits CS' Position in Legal Proceedings
However, the judges in Bellinzona did not agree with this position, as reported by the Swiss news agency SDA. In their ruling, published on Tuesday, they referred to the merger agreement between the two major banks. This agreement includes not only the transfer of capital, premises, and personnel, but also the assumption of CS’s position in all court, arbitration, and administrative proceedings.
The ruling is not yet final, and UBS has the option to appeal to the Federal Supreme Court.
The massive trial involves relationships between a former CS employee, the Bulgarian mafia, drug trafficking, and money laundering. Both CS as a company and a former employee were found guilty. Additionally, the court ordered the confiscation of assets worth over 12 million Swiss francs and imposed a substitute claim on CS for over 19 million Swiss francs for funds that could not be seized.
