Credit Suisse questioned about compliance with Russian sanctions

US lawmakers are investigating Credit Suisse Group’s compliance with sanctions related to Russia’s invasion of Ukraine and have asked the Swiss bank to provide all relevant documents.

Credit Suisse has been asked to hand over documents related to the financing of yachts and private jets owned by potentially sanctioned individuals, according to a letter sent by the U.S. House of Representatives Oversight and Reform Committee to the chief executive. of the bank, Thomas Gottstein, on Monday.

The investigation comes after the Financial Times reported earlier this month that Credit Suisse had asked hedge funds and other investors to destroy documents relating to the yachts and private jets of its wealthiest clients, in the purpose of preventing the leakage of information on loans to the oligarchs who were then sanctioned. .

The letter was sent by US Representatives Carolyn Maloney and Stephen Lynch. Maloney chairs the House Oversight and Reform Committee and Lynch is chair of the National Security Subcommittee. The letter expressed concern over the timing of the bank’s instruction to destroy the documents, as it coincided with Switzerland’s statement that it would join other countries in imposing sanctions on Russia.

The investigation is another headache for CEO Thomas Gottstein as he seeks to get the bank back on track after a tough 2021.
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Representatives Carolyn Maloney and Representatives Stephen Lynch, far right, with House Speaker Nancy Pelosi.
Representatives Carolyn Maloney and Representatives Stephen Lynch, far right, sent the letter to Credit Suisse.
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Credit Suisse declined to comment on the investigation on Monday. He referred to a statement made earlier this month in response to the FT report.

In that statement, he said the request was made to ensure investors adhered to a non-disclosure agreement and was “in no way related to the recent implementation of additional sanctions – which we are complying with.” fully”.

Credit Suisse was asked to comply with the committee’s request by April 11 and will have to send documents from January 2017 until today, according to the letter.

The investigation is another headache for Gottstein as he seeks to get the bank back on track after a tough 2021. Last year, the bank’s president, Antonio Horta-Osorio, resigned after an internal investigation found he broke COVID-19 rules, lost billions of dollars from the fund’s collapse. investment Archegos Capital Management and has been tarnished by its involvement with now-defunct financier Greensill Capital.

Credit Suisse stopped pursuing new business in Russia after the February 24 invasion of Ukraine, the Swiss bank said on Monday in an internal document seen by Reuters.

Last week, prominent US lawmaker Maxine Waters asked more than 30 financial services trade groups for information on the steps their members have taken to end business ties in Russia.

New York Post

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