© Reuters. FILE PHOTO: A logo of the Swiss bank UBS in Zurich, Switzerland, March 29, 2023. REUTERS/Denis Balibouse/File Photo
ZURICH (Reuters) – UBS said on Saturday it is “not aware” of a U.S. Justice Department investigation into alleged sanctions-related breaches, following a media report earlier this week.
“We are not aware of any such investigation,” UBS said in a statement. “UBS and CS have significantly and proactively reduced their exposure to Russia.”
On Wednesday, Bloomberg reported that a large-scale investigation by the US Department of Justice was underway into alleged breaches that helped Russian clients evade sanctions.
The Justice Department declined to comment and UBS also declined to comment to Reuters on Wednesday when asked for a response to the report.
Trading in UBS shares was temporarily suspended after they fell almost 8% following the article.
Citing anonymous people familiar with the matter, Bloomberg reported that the Justice Department had spoken with U.S.-based UBS lawyers about Credit Suisse’s alleged exposure to sanctions violations since UBS acquired its smaller rival in June.
The Justice Department is also investigating possible compliance failures at UBS, one of the people cited by Bloomberg said. The people said the investigation was still in its early stages and may not lead to charges or a settlement.
