Credit Suisse Accused of Sheltering Drug Ring Money Laundering Activities

February 7th will mark the beginning of the trial which involves Credit Suisse. The banking institution is currently being prosecuted by Swiss authorities after a money laundering scandal surfaced, in which Credit Suisse is demanded to pay back 42.2 million Swiss francs in compensation.

The allegation against the bank appeared in December 20th after a turning point was reached in a 14-year old investigation into the activities of a Bulgarian drug ring. Reports estimate that around 55 million francs were deposited at Credit Suisse during that 14 year span by the ring leaders.

The Swiss federal criminal court pointed out from a 500-page long report that Credit Suisse has some ‘serious organizational shortcomings’ when it comes down to clamping on money laundering. Furthermore, a former employee believed to have helped the crooks was charged by the prosecutors.

Meanwhile. the bank holds its ground and has officially rejected all allegation, procaliming in an official statement that it “unreservedly rejects as meritless all allegations in this legacy matter raised against it and is convinced that its former employee is innocent,” adding that “The bank will defend itself vigorously in court.”

Credit Suisse backed up this claim by announcing it will put aside $500 million francs for its defense.

Credit Suisse is Switzerland's second-largest bank, yet this is not the first time it has entered controversial territory. FINRA recently fined a unit of the company with $9 million, but the big news came when the bank was fined by SEC with $475 million last October.