Switzerland’s troubled Credit Suisse and its rescuer, USB, are under investigation over whether the bankers helped Russian oligarchs evade Western sanctions, according to a media report. Sources say some major US banking institutions are also under scrutiny in the investigation launched by the Justice Department.
Credit Suisse, US banks probed for suspected sanctions violations favoring Russia’s emigres
Credit Suisse and UBS, Switzerland-based global investment banks and financial services firms, are under investigation by the US Department of Justice (DOJ), Bloomberg revealed, citing informed sources who wished to remain anonymous.
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According to the report, the department is trying to establish whether financial professionals working for these and other banks aided sanctioned wealthy Russians in efforts to circumvent sanctions imposed by Western governments.
Two people familiar with the inquiry told the publication that US authorities have sent multiple subpoenas to the two Swiss giants as well as employees of some major US banks. They want to identify bankers and advisors who have worked with such clients over the years and find out whether any laws were broken.
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The DOJ requested information on the case prior to the recent crisis at Credit Suisse. Earlier in March, its shares hit a record low amid loss of investor confidence. The bank borrowed $54 billion from the Swiss National Bank and UBS came to its rescue with a state-backed takeover offer.
Russia’s invasion of Ukraine led to a widespread expansion of sanctions against influential people linked to the government and the Kremlin in Moscow, including oligarchs. Earlier, Credit Suisse was famous for catering to wealthy Russians, notes the report.
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At some point, it managed over $60 billion for them, generating up to $600 million in annual revenue. When it ended its business relationship with individual Russian clients in May, 2022, the bank had about $33 billion in funds, 50% more than UBS.
What other banks do you think could be investigated for facilitating sanctions relief for Russians? Share your thoughts on this topic in the comment section below.
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