US lawmakers are investigating Credit Suisse Group’s compliance with sanctions related to the Russian invasion of Ukraine and have asked the Swiss bank to provide all relevant documentation.
Credit Suisse has been asked to turn over documents related to the financing of yachts and private jets belonging to potentially sanctioned individuals, according to a letter from the US House of Representatives’ Committee on Oversight and Reform to the bank’s chief executive officer, Thomas Gottstein, Monday.
The investigation comes after the Financial Times reported earlier this month that Credit Suisse had asked hedge funds and other investors to destroy documents on the yachts and private jets of its wealthiest clients to prevent leaking information about loans to oligarchs who later were sanctioned.
The letter was sent by US Representatives Carolyn Maloney and Stephen Lynch. Maloney is chairman of the House Oversight and Reform Committee and Lynch is chairman of the Subcommittee on National Security. The letter expressed concern about the timing of the bank’s order to destroy the documents, as it coincided with Switzerland’s statement that it would join other countries in imposing sanctions on Russia.
Credit Suisse declined to comment on the investigation on Monday. It referenced a statement made earlier this month in response to the FT’s report.
That statement said the request was made to ensure investors were complying with a non-disclosure agreement and was “in no way related to the recent imposition of additional sanctions – which we fully comply with.”
Credit Suisse has been asked to comply with the committee’s request by April 11 and, according to the letter, has documents to send from January 2017 through today.
The investigation is another concern for Gottstein as he tries to get the bank back on track after a challenging 2021. Last year, the bank’s chairman, Antonio Horta-Osorio, resigned after an internal investigation found he broke COVID-19 rules and lost billions of dollars in the collapse of investment fund Archegos Capital Management and was killed through his stake in tarnished by the now-defunct financier Greensill Capital.
Credit Suisse halted new business in Russia after invading Ukraine on February 24, the Swiss bank said on Monday in an internal document seen by Reuters.
Prominent US lawmaker Maxine Waters last week asked more than 30 financial services associations for information on the steps their members have taken to end business ties in Russia.
https://nypost.com/2022/03/28/credit-suisse-probed-over-compliance-with-russia-sanctions/ Credit Suisse checked compliance with Russia sanctions