The U.S. Justice Department has reportedly focused its attention on Credit Suisse (SIX:CSGN), suspecting the bank of assisting Russian clients in evading sanctions. This development comes as part of a larger investigation involving multiple subpoenas sent to various banks. The news was reported by Bloomberg News on Wednesday.
UBS, the new parent company of Credit Suisse, is also under review for potential compliance failures. However, neither UBS nor the Justice Department have provided any comments on the matter.
Following the news, UBS shares experienced a 5% drop in premarket trade on Wednesday. The focus on Credit Suisse marks a narrowing down of the Justice Department's wide-ranging investigation into possible sanctions evasion.
The allegations against Credit Suisse and UBS come amidst heightened global scrutiny of financial institutions and their role in facilitating illicit activities. As part of these investigations, regulators are increasingly focusing on potential compliance failures as they seek to clamp down on such practices.
It is important to note that these are only suspicions at this stage and no formal charges have been brought against either Credit Suisse or UBS. The outcomes of these investigations could have significant implications for both banks and the broader financial sector, given their size and influence in global markets.
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