The alleged missteps are said to have facilitated Russian clients in bypassing sanctions.
The Swiss multinational investment bank UBS refuted reports of a US Department of Justice investigation into compliance lapses at its subsidiary, Credit Suisse
Swiss multinational investment bank UBS asserted that they have no knowledge of such a probe, emphasizing proactive efforts to reduce their exposure to Russia. An insider revealed that Swiss multinational investment bank UBS has been in communication with the DOJ regarding this purported inquiry. This development follows a Bloomberg report citing anonymous sources, which claimed that the Justice Department had briefed Swiss multinational investment bank UBS lawyers about Credit Suisse’s alleged involvement in sanctions breaches. CNN sought comment from the Justice Department but has not yet received a response.
The Swiss Bankers Association estimated in July that over $200 billion of Russian funds are held in Swiss banks, a figure some experts believe underestimates the actual amount. This issue gained prominence during a hearing convened by the US Helsinki Commission, focusing on concerns about sanctions avoidance and money laundering amid Russia’s ongoing actions in Ukraine.
Senator Ben Cardin, a commission co-chair, emphasized the importance of effectively enforcing sanctions as part of the strategy to support Ukraine
He pointed out that the laundering of illicit funds in Switzerland has contributed to Russia’s economic resilience in the face of sanctions.
The news prompted a sharp decline in Swiss multinational investment bank UBS shares, leading to a temporary halt in trading on the Swiss Stock Exchange. Although Swiss multinational investment bank UBS stocks have since made a partial recovery, they remain 1.7% lower than before the report emerged on Wednesday.
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