Switzerland’s troubled Credit Suisse and its savior, USB, are under investigation into whether bankers helped Russian oligarchs evade Western sanctions, according to a media report. Some of the major US banking institutions are also under scrutiny within the investigation launched by the Department of Justice, the sources say.
Credit Suisse and US banks under investigation for alleged sanctions violations that favor Russia’s wealthy
Global investment banks and Swiss-based financial services firms Credit Suisse and UBS are under scrutiny by the US Department of Justice (DOJ), Bloomberg revealed, citing informed sources who remained anonymous. .
According to the report, the department has been trying to establish whether financial professionals working for these and other banks have supported sanctioned wealthy Russians in an attempt to circumvent restrictions imposed by Western governments.
US authorities have sent a series of subpoenas to employees of the two Swiss giants, as well as some major US banks, two people familiar with the investigations told the publication. They want to identify bankers and advisers who have worked with these clients in recent years and find out if any laws were broken.
The Justice Department requested information on the matter before the recent crisis at Credit Suisse erupted. In early March, its shares fell to a record low amid loss of investor confidence. The bank borrowed $54 billion from the Swiss National Bank and was bailed out by UBS with a state-backed takeover proposal.
The Russian invasion of Ukraine led to a massive expansion of sanctions against the Moscow government and influential people allied with the Kremlin, including oligarchs. Before that, Credit Suisse was known for catering to wealthy Russians, the report notes.
At some point, he managed over $60 billion for them that generated up to $600 million in annual revenue. When it ended business relationships with individual Russian clients in May 2022, the bank had about $33 billion of its funds, 50% more than UBS.
What other banks do you think can be investigated for facilitating sanctions evasion for the Russians? Share your thoughts on the subject in the comments section below.
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