Credit Suisse to fight claim it cleaned drug cash for Bulgarian gang

Zurich — Swiss prosecutors are pursuing about Sf42.4m ($45.5m) in compensation from Credit Suisse in a money-laundering trial due to begin on February 7, the Swiss Federal Criminal Court (FCC) said on Monday.

The office of the attorney-general indicted the bank in December 2020 after an investigation into the activities of a Bulgarian crime ring involving top-level wrestlers accused of laundering profits from cocaine trafficking.

The attorney-general’s office “has stated that it is seeking compensation of around Sf34.8m as well as additional compensation of around Sf7.6m from Credit Suisse”, an FCC spokesperson said in an emailed statement.

Credit Suisse said it “unreservedly rejects as meritless all allegations in this legacy matter raised against it and is convinced that its former employee is innocent”. The bank told Reuters that it would defend itself vigorously in court.

Switzerland’s second-biggest bank, which is trying to rebuild its reputation after a series of scandals and the abrupt departure of its chair, issued a profit warning last week due to legal costs and a slowdown in its trading and wealth management divisions.

A summary on the FCC’s website shows Credit Suisse is accused of failing to take all necessary measures to prevent an employee from laundering money.

The employee, a former Credit Suisse manager who was also indicted, is charged with having processed transactions worth several million Swiss francs between 2004 and 2008 despite indications the money could be of criminal origin. Credit Suisse denied any wrongdoing by the employee.

Reuters