Infotech

Credit Suisse must step up its fight against money laundering



Posted on Dec. 2020 at 19:05Updated 22 Dec. 2020 at 19:10

The Fed puts Credit Suisse under scrutiny. The US Federal Reserve has announced that it has ordered the Swiss bank to step up its anti-money laundering policy. The New York Fed has indeed noted malfunctions in its procedures in the United States. Within 90 days, Credit Suisse’s board will have to submit a reform plan to better monitor potentially illicit activity.

This plan “Must provide a sustainable governance framework which, at a minimum, takes into account and includes actions aimed at improving policies, procedures and controls for BSA compliance [la loi sur le secret bancaire] and AML [loi anti-blanchiment]. These actions should not be limited to US operations.

Precedents

The bank will have to report regularly for its actions, otherwise it is exposed to heavy financial penalties. In December 2016, she was fined $ 16.5 million. He was accused of not having been able to detect illegal transactions carried out by entities that were not registered with the American authorities: 55 million company shares had changed hands between January 2011 and September 2013, via Credit Switzerland, without this being reported to regulators.

The Financial Industry Regulatory Authority (Finra) had determined that the bank had not allocated enough staff to control risks. She then agreed to pay the financial penalty without admitting her guilt, which allowed her to keep her banking license. The same year, it had also found an agreement to 5.3 billion dollars with the American authorities for its role in the crisis of the “subprimes”.

This time, Credit Suisse, also targeted by surveys in Europe, is reassuring. The bank claims to have “Already implemented a vast plan to improve procedures and supervision of banking secrecy and money laundering” in its New York branch, which answers “Largely to the requirements” from the Fed.

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