Swiss watchdog raps Credit Suisse for anti-corruption shortcomings

ZURICH: Credit Suisse will be overseen by an independent monitor after failing in its duty to combat corruption in cases linked to soccer body FIFA and Venezuelan and Brazilian state oil companies, the Swiss Financial Market Supervisory Authority (Finma) said yesterday.

Separately, the Swiss authority determined Credit Suisse also fell short of its obligation to fight money laundering while managing “a significant business relationship for the bank with a politically exposed person”, Finma said in a statement.

Instead of disciplining a successful relationship manager who repeatedly breached the bank’s compliance regulations for years, Finma said Credit Suisse rewarded him with high payments and positive reviews.

The Swiss finance industry watchdog ordered measures to improve the bank’s anti-money laundering process.

It also said it was installing an independent monitor to make sure Credit Suisse followed through and to prevent a repetition of incidents like the ones it investigated, which involve FIFA, Brazilian oil corporation Petrobras and the Venezuelan oil corporation Petróleos de Venezuela SA (PDVSA).

“The identified shortcomings occurred repeatedly over a number of years, mainly before 2014,” Finma said. “An above-average number of faults were discovered in business relationships opened by the former Group subsidiary Clariden Leu AG.”

In response, the Zurich-based bank said Finma’s probes had discovered “legacy weaknesses”, adding it had already acted to improve compliance.

Credit Suisse also said it has not been fined or ordered to disgorge profits. “Implementing a culture of compliant growth at Credit Suisse is our highest priority.”