Credit Suisse (CSGN.S) managed to make headlines again, as they have for the past 18 months over various scandals and distresses. Now, it is to determine whether or not the bank couldn’t stop cash laundering which is linked to a cocaine trafficking group. This would significantly mark this event as the nation’s major banks’ first criminal trial in the Switzerland Federal Criminal Court. Judges may make their calling on Monday.
The so-called cocaine gang from Bulgaria had allegedly laundered millions of euros from 2004 to 2008, and the charges against Credit Suisse and its former employee depict that they had supposedly turned a blind eye to the situation.
It is a severe case, noted for testimonies that spoke of murders and suitcases of money, and it is said to be linked to the bank and the ex-employee who are facing charges. They are said to have had an understanding with the Bulgarian ex-wrestler Evelin Banev and allies—two of them who also face retribution.
When requested for details, Credit Suisse had emphasized that it is innocent and has no dealings whatsoever, countering the allegations placed on it that are apparently groundless. It also strongly stood by the claim that the ex-employee was just as innocent. They also hold tight reigns over them being unaware of the illegal activity in their clientele. Apparently, all they knew of Banev and his associates is that they did clean business in real estate, leasing, renting, and construction sectors.
Switzerland’s authorities, on the other hand, have chosen to give this case a lot of contemplation and consideration since this would underline just where on the steps of justice, do the prosecutors place the country’s important banks.
The country is well-known and admired for its role in the banking field, but that doesn’t exempt its second-largest bank from the eyes of the law.
Experts on this matter stated exclusively that the mere fact that Switzerland went ahead with tagging legal action and accountability on Credit Suisse, which is a world-class phenomenon, is enough to make it a tough example for onlookers who believed there are loopholes in the law.
Marc Herkenrath, the country’s Deputy Director of Transparency International, had commented that their nation had enormous holes when it came to preventing such issues of laundering. Swiss laws dictate that companies may be charged for insufficient control or for their inability to impose proper restrictions which might ward off a crime before it occurred, which made it vulnerable to criminal liability as a whole.
Despite this law, there have been only a marginal amount of cases related to banks and money laundering. Thus, Credit Suisse being held accountable in this manner would send a subtle caution to the other domestic banks.
As for the case itself, Credit Suisse may have to pay a compensation of about 42.4 million in their domestic currency, the Swiss francs (or $45.86 million), as that is what the prosecutors are expectant of.
The allegations on the ex-employee, or the former relationship manager who retired in 2010, claimed that she had been aiding in the illegal transactions for their clients.
As seen through records, so far is dated to be a swindled amount of 146 million Swiss francs via bank and 43 million francs through cold and hard cash, a generous amount of which were transported through suitcases. When asked for comments, the ex-employee shrugged off the accusations and outed herself to be innocent.
She’d also admitted that the bank realized its clientele had much more dirt than any normal consumers but regardless, they serviced the Bulgarian gang. She’d unveiled that the two murders and other scandals related to their clients had been shared with her managers—who had seemingly turned a blind eye in favor of pushing the matter under the rug.
In February, Banev’s attorney declined to go in-depth with the matter but he refused his client’s connection through Credit Suisse’s money-laundering scandal.