Geneva prosecutors are investigating an employee at Credit Suisse and two former staffers after the bank flagged suspicious transactions to local anti-money laundering authorities, according to people familiar with the matter.
It started last year and also focuses on two former Credit Suisse employees who went on to form asset management firm TG Investment Services. The Credit Suisse employee is being investigated for insufficient diligence while the two employees of TG are alleged to have engaged in fraud and criminal mismanagement, the people said.
Credit Suisse has been tied up in a separate affair in which one of its Geneva bankers admitted last year to faking trades for rich Russian and Georgian clients in order to cover losses in their accounts. In both cases, the actions were centered in Geneva and targeted clients in faster-growing emerging markets that Credit Suisse is counting on for the growth of its wealth management business. Both cases raise questions about what, if anything, the bank should have done differently to detect the fraud earlier.
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