Cocaine, Cash, an unlucky Bulgarian wrestler, the lurid details of the February trial captured the attention of Swiss finance. Credit Suisse Group AG was accused of failing to stop a drug trafficker laundering millions of dollars.
In a landmark case against the lender, a top Swiss criminal court rules in favour of the defendant
Ex-relationship manager was also convicted of money laundering
Monday’s verdict was guilty. This historic judgment is the first criminal conviction of any major Swiss lender in history. On Monday afternoon, the top Swiss criminal court handed down the ruling. The former relationship manager of the bank was also convicted of money laundering.
The woman received a suspended sentence of 20 months in prison. Credit Suisse was fined 2 million Swiss Francs ($2.1 Million). Credit Suisse was also hit with a 19 million franc claim, which is the equivalent of the amount that was allowed to be washed.
Credit Suisse’s reputation is being further damaged by the judgment. Credit Suisse had previously claimed that the crimes were committed in an era where compliance standards were more stringent. It has been dealing with a string of scandals that have caused its shares to drop to near-record levels. It may be facing another criminal indictment in a separate case later in the year.
In a statement, the bank stated that it would appeal the decision. It also noted that the pretrial investigation dated back over 14 years.
Credit Suisse said that it is constantly testing its anti-money laundering framework, and has been strengthening the system over time in line with evolving regulatory standards.
Credit Suisse was critical of the fact that the case was brought up so long after the actual events. In late 2020, the bank’s “surprise” was expressed by Swiss prosecutors when it was publicly charged with money laundering offenses. The alleged crimes were committed between 2004 and 2008.
However, Swiss law allows local prosecutors to press criminal charges against banks if they feel that the institutions failed to adequately screen clients and cash for obvious ties with illicit activity. According to the 515-page indictment, the former Credit Suisse manager E., who cannot be identified due to Swiss reporting restrictions, accepted bank notes valued at more than 500,000 euros (528,650). She testified that cash deposits were common due to the poor state of Bulgaria’s banks at that time.
In the case, two other Bulgarians were convicted for their participation in a criminal organisation and aggravated cash laundering. The first was sentenced to a 36-month sentence with 18 months suspended and the second was sentenced to a 12-month suspended offense.
Drug mules
The principal Bulgarian involved in the scandal was later sentenced to a 20-year term for drug offences. He organized the import of tens of tonnes of cocaine into Europe using boats, planes, and drug mules who were willing to take cocaine-packed rubber balls.
Credit Suisse won an early victory in the February trial. The presiding judge declared that any evidence from before February 2007 would not be considered due to the 15-year limitation on aggravated money laundering charges. The court heard details about the bank’s failures in compliance and then moved on to the next day.
E. stated she had “no banking” experience and that she only passed her first banking exam to get into the industry. Later she stated Credit Suisse did not freeze or block the accounts of the Bulgarian following his arrest for drug trafficking. She was given instructions to wait and see if this information is confirmed.
