After an accused employee dies Credit Suisse is acquitted of money laundering offences.

NOV 27 - A top Swiss court acquitted Credit Suisse, now part of UBS, of failing to prevent money laundering by a Bulgarian cocaine trafficking gang, overturning a 2022 conviction.

The Federal Criminal Court's original ruling was seen as a test case for the prosecution of banks. It had found an

• Ex-employee of the bank guilty of money laundering, and
• Credit Suisse was guilty of failing to do enough to stop the gang from laundering profits through the lender from 2004 to 2008.

The former employee died in April 2023.

•   Her heirs and the bank filed an appeal in November.

In a statement, the federal court's appeals chamber said that because the woman had died, it was not possible to examine the alleged violation of the criminal code without violating the presumption of innocence in her case.

• "For this reason, the bank was acquitted and
• The compensation demand imposed on it was cancelled,"  

In 2022, Credit Suisse had been fined 2 million Swiss francs ($2.3 million).

The court at the time

• Also ordered the confiscation of assets worth more than 12 million francs that the gang held in Credit Suisse accounts, and
• Ordered the bank to pay compensation of over 19 million francs, the value of the gang's assets that could not be confiscated due to deficiencies at the bank.

UBS welcomed the ruling, noting that the case was a legacy relating to Credit Suisse.

• "Subject to an appeal by the Swiss federal attorney general's office, the verdict brings this legal issue to a close," UBS said in a statement.

The attorney general's office said it would analyse the findings and decide on appropriate action.  

Key Points:

1. Death of Key Employee: The acquittal followed the death of a former Credit Suisse employee, who was central to the case. She passed away in April 2023, and her death complicated the appeals process. The court ruled that it was not possible to examine the alleged violations without violating the presumption of innocence in her case
2. Original Conviction: In 2022, Credit Suisse was fined 2 million Swiss francs and ordered to pay compensation of over 19 million francs due to deficiencies in preventing the laundering of the gang’s profits.
3. Appeal and Acquittal: The bank and the deceased employee’s heirs filed an appeal, leading to the recent acquittal. The court’s decision also canceled the compensation demand imposed on Credit Suisse
4. UBS’s Response: UBS, which took over Credit Suisse in March 2023, welcomed the ruling, noting that it resolved a legacy issue related to Credit Suisse

Source

• https://www.reuters.com/business/finance/credit-suisse-acquitted-2022-conviction-over-cocaine-cash-laundering-case-2024-11-27/
• Credit Suisse acquitted of 2022 conviction in cocaine cash laundering case. https://www.aol.com/credit-suisse-acquitted-2022-conviction-111859941.html.
• UBS acquitted on appeal in Credit Suisse cocaine trial. https://www.msn.com/en-xl/news/other/ubs-acquitted-on-appeal-in-credit-suisse-cocaine-trial/ar-AA1uS5Zt.
• Credit Suisse conviction annulled in 2022 cocaine cash laundering case. https://finance.yahoo.com/news/credit-suisse-acquitted-2022-conviction-111859870.html.