News In Brief - October 21, 2021

October 21, 2021
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Authorities in the UK, US and Switzerland fine Credit Suisse after financial crime blunder.

Credit Suisse Fined For Financial Crime Failings

On October 19, banking and criminal justice regulators in the US, UK and Switzerland fined Credit Suisse, the Swiss-headquartered investment bank, a total of $475m.

This was due to the fact that it was deemed to have failed to properly manage the risk of financial crime within its emerging markets business.

The enforcement action was collaborative, involving the US Department of Justice, the US Securities and Exchange Commission, the UK's Financial Conduct Authority (FCA) and the Swiss Financial Market Supervisory Authority (FINMA).

The investment bank had sufficient information from which it should have appreciated the unacceptable risk of bribery associated with the two Mozambican loans and a bond exchange related to government-sponsored projects, according to the FCA.

“The FCA’s fine reflects the impact of these tainted transactions which included a debt crisis and economic harm for the people of Mozambique,” said Mark Steward, executive director of enforcement and market oversight at the regulator.

Steward also indicated that the fine would have been higher if not for Credit Suisse agreeing to provide the debt write-off of US$200m. “The FCA will continue to pursue serious financial crime control failings by regulated firms,” he said.

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