To launder money. Nope, not a joke. A Bulgarian wrestler, Credit Suisse and one of its ex-employees were indicted
by Swiss prosecutors on Thursday for helping a Bulgarian drug ring launder CHF 35 million ($39m).
The story dates back to the early 2000s. When communism fell in Bulgaria, top-level athletes were left with little financial support. So they turned towards other (real shady) sources of income.
As a client of Credit Suisse, one Bulgarian wrestler – who remains anonymous and has already been convicted in several countries – laundered profits from a European cocaine trafficking ring through Switzerland. He was aided by a former employee at the bank, who set up “special financial transactions” through which the money was laundered.
Credit Suisse has been charged for failing to take “reasonable and required” anti-money laundering measures, with prosecutors claiming the bank was aware of the situation “from at least 2004.”
- The Zurich-based bank, on the other hand, says it’s ‘astonished’ by the indictment.
Now? The case will be handed to the Swiss Federal Criminal Court, where Credit Suisse will “defend itself vigorously.”
Bad to worse.
From a spying scandal in February, to questionable deals with Softbank and involvement in one of Asia’s most spectacular accounting frauds – Credit Suisse has had a weird 2020. The bank’s losses and scandals might plunge it into a fourth-quarter loss, says Bloomberg
This isn’t the only Swiss bank with dirty secrets. Just last month, Swiss prosecutors scolded
Société Générale for letting convicted fraudster Allen Stanford deposit $150m.