Credit Suisse pays $47m to end probe

Credit Suisse agreed to pay a $47m penalty to the US justice department to end an investigation into whether it hired employees in Asia in exchange for government contracts and other favours.

Credit Suisse’s Hong Kong unit reached a nonprosecution agreement with the department regarding its recruitment practices in Asia between 2007 and 2013, according to a statement from the Zurich-based bank on Wednesday.

The payment would have no material impact on secondquarter results since the bank had already provisioned for the payment, it said.

The settlement resolves another legal issue for Credit Suisse, which has paid about $13bn in fines since 2008.

The bank said earlier in 2017 that entities including the justice department and US Securities and Exchange Commission were investigating whether the had bank hired referrals from government and other stateowned entities in exchange for investment banking business and regulatory approvals, in potential violation of the Foreign Corrupt Practices Act.

The Swiss giant said it had made numerous enhancements to its compliance and control functions since 2013 and that no criminal charges were brought in the case. Its Asia-Pacific unit is now a standalone unit under the leadership of Helman Sitohang, one of the results of a three-year overhaul by CEO Tidjane Thiam. that has pivoted the bank toward wealth management.

Credit Suisse is one of several global banks to have been investigated by US authorities over their hiring practices in Asia. Others including JPMorgan Chase & Co and HSBC Holdings also allegedly hired children of Chinese decision makers to win business, in violation of antibribery laws.

SEVERAL GLOBAL BANKS HAVE BEEN INVESTIGATED BY US AUTHORITIES OVER HIRING PRACTICES IN ASIA

JPMorgan agreed in 2016 to pay about $264m to settle the claims.

Deutsche Bank said in its annual report in March that US regulators were among those probing its employment history for possible bribery violations, without identifying a country.

Nizar Al-Bassam, a former head of corporate finance for Central and Eastern Europe, the Mideast and Africa who left the lender to start his own fund in 2016, is suing the bank for unpaid bonuses he argues were unfairly withheld in respect of hires he made.