- The US Department of Justice has intensified its inquiry into two major Swiss banks, Credit Suisse Group and UBS Group AG, regarding potential violations of laws allowing Russian clients to circumvent sanctions. The primary focus of the Department of Justice's investigation pertains to the actions of Credit Suisse. Following the takeover of Credit Suisse by UBS Group in June, UBS has also come under scrutiny.
- The US Department of Justice has formally requested information on how these banks managed accounts belonging to sanctioned clients over the past several years. During this period, the US blacklisted over a thousand affluent Russians. The report also noted that the investigation includes both restrictions imposed after the Russian invasion of Ukraine in 2022 and previous rounds of sanctions.
Why it matters
The investigation is still at an early stage and may not lead to charges or a settlement. However, it comes at a critical time for the bank, which is headquartered in Zurich, and which includes thousands of employees from Credit Suisse. UBS Group AG is the largest Swiss financial holding company, while Credit Suisse was the second-largest Swiss financial conglomerate, following UBS, prior to the acquisition.
