Credit Suisse pays U.S. $77 million to settle Asia hiring corruption probes
06 Jul 2018

Credit Suisse Group AG (CSGN.S) agreed to pay about $77 million to settle U.S. bribery probes into its awarding of jobs to family and friends of Chinese and other government officials in the Asia-Pacific region, to win lucrative investment banking business.

The U.S. Department of Justice on Thursday said Credit Suisse’s Hong Kong unit will pay a $47.03 million criminal fine and enter a non-prosecution agreement, in which the Swiss bank admitted and accepted responsibility for wrongdoing.

Credit Suisse will also pay $29.82 million to settle related U.S. Securities and Exchange Commission civil claims.

JPMorgan Chase & Co (JPM.N) agreed to pay about $264 million in Nov. 2016 to settle similar probes into its hiring practices.

Credit Suisse was accused of violating the Foreign Corrupt Practices Act by hiring and promoting dozens of people connected with Asian government officials from 2007 to 2013, as a quid pro quo to win banking business.

The SEC said Credit Suisse offered jobs to more than 100 people with such ties during the period, including over 60 recommended by officials from Chinese state-owned companies.

Authorities said many of these “relationship hires” or “referral hires” were less qualified than other job candidates who lacked the desired ties.

They said one referral hire was the daughter of a top official for a state-owned Chinese energy company.

– By Jonathan Stempel, 5 July 2018, Reuters.

Link to Reuters.

You can claim CPD minutes for reading this article, by signing up to our CPD Wallet

Must Read

Understanding EU anti-money laundering law: EU 4AMLD, EU 5AMLD, EU 6AMLD

In recent years the European Union has looked to flex its legislative muscle and come up with an array of laws aimed at cracking down on money laundering and terrorism financing. Key to its package are its various directives, which impact national laws, banking operations and other industries across… Read More

Banking: Curbing employee fraud and corruption with an effective KYE program

The banking system’s vulnerability to fraud, corruption and money laundering is once again a focal point of debate in the wake of recent disclosures by the Central Bank of Nigeria that major losses have been recorded by banks from armed robbery cases and other criminal activities amounting to N12bn… Read More