The Swiss financial regulator (FINMA) has launched several enforcement proceedings against Credit Suisse bank for the espionage scandal that rocked the country’s entire financial industry in 2019.
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The entity opened an investigation after the details of two cases of espionage carried out by the bank against its high-ranking employees came to light. One of these was Iqbal Khan, who headed the wealth management division of Swiss credit and that, according to local media, he now works at rival bank UBS.
Enforcement procedures will focus on breaches of control laws and “on the question of how the bank’s surveillance and security activities were documented and monitored,” writes the Financial Times newspaper.
Sin embargo, Credit Suisse has reiterated repeatedly that spying on his employees was not part of his culture. The internal investigation, conducted by an independent legal firm in 2019, found that the then COO Pierre-Olivier Buoy he had spied on Khan. The surveillance activities included chasing Khan through the streets of Zurich to see if he was trying to convince his colleagues to join him at UBS.
Bouée, who was also the trusted person of the director general Tidjane Thiam, acknowledged having personally ordered to spy on some Credit Suisse employees, for which he ended up being fired, reports the media.
As a result, Thiam himself was forced to resign from his post in February 2020. He asserted that he knew nothing of the espionage and acknowledged that this revelation caused anxiety and pain. The bank did not find a single piece of evidence incriminating Thiam.
According to FINMA, in the first stage the regulator will look for more evidenceUpon requesting additional documents, you will hire an investigator or conduct on-site reviews and interviews. Its enforcement proceedings are expected to continue for several months.
While the entity can demand that banks improve their compliance and internal supervision systems, it is unable to fine them. However, is authorized to demand that whoever is guilty surrenders the funds obtained illicitly. Furthermore, it is capable of suspending or revoking licenses granted to individuals and institutions operating in Switzerland, although it uses this measure only in the most extreme cases of abuse.
In turn, Credit Suisse stressed that “it will continue to cooperate fully with FINMA and is willing to support its effort to ensure a complete and rapid conclusion of the exam and incorporate the lessons learned.”
This investigation represents a challenge for the new CEO of Credit Suisse, Thomas Gottstein, which is trying to stamp out the embarrassing headlines in the media that damage the bank’s image.
Gottstein is one of the bank’s veterans who succeeded Thiam in his position, earning applause for having managed to lead the financial entity through the pandemic. In July 2020, it revealed radical changes in the bank’s management structure.
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