Swiss financial watchdog FINMA has given Credit Suisse until the end of 2019 to improve its anti-money laundering controls and risk management processes after concluding two enforcement procedures against the bank.
The first procedure revealed shortcomings at Credit Suisse in corruption cases linked to FIFA, Petrobras and Petróleos de Venezuela (PDVSA). According to the regulator, Credit Suisse failed to determine the beneficial owner, flag a business relationship with increased risk, and conduct plausibility checks in all these cases.
The failures occurred for several years, mainly before 2014, FINMA said.
Through the second procedure, FINMA revealed deficiencies in the bank’s management of a significant business relationship with a politically exposed person (PEP) for many years.
FINMA said that the bank failed to adequately record and monitor the risks posed by the PEP and instead rewarded him with high payments and positive reviews.
The regulator has acknowledged the bank’s cooperation in the enforcement procedures and ordered an independent third party to review the effectiveness of the remedial measures taken by the bank.
However, the regulator has not fined the bank, or ordered the bank to disgorge profits and limit business activities.
In response, Credit Suisse said: “Implementing a culture of compliant growth at Credit Suisse is our highest priority and it is an individual and collective responsibility that we take extremely seriously.
“We will continue to work closely with FINMA to complete the changes that are underway and implement additional measures.”