Swiss judges will rule on Monday whether Credit Suisse (CSGN.S) failed to prevent money laundering. Which linked to an alleged cocaine trafficking gang in Switzerland’s first criminal trial of one of its major banks. Credit Suisse and one of its former employees face charges. Which is for allowing an alleged Bulgarian cocaine trafficking gang to launder millions of euros from 2004 to 2008.
However, the case which included testimony on murders and cash stuffed into suitcases centers on relationships. That Credit Suisse and its ex-employee had with former Bulgarian wrestler Evelin Banev and multiple associates. Two of whom they also charged in the case.
Switzerland’s second biggest bank, when asked for comment, reiterated that it rejected all the allegations as meritless. He said there was no wrongdoing by its former employee. The case is being followed closely in Switzerland. Where it is a test for prosecutors to take a potentially tougher line against the country’s banks.
Thereafter, corruption and money laundering experts said the fact that Switzerland had taken legal action against a global banking player like Credit Suisse. This could send a powerful message in a country famous for its banking industry. Swiss private banks have adopted tougher anti-money laundering checks after an international regulatory crackdown to prevent money laundering.
Switzerland still has massive gaps in the prevention of money laundering, Marc Herkenrath, Deputy Director of Transparency International in Switzerland says. Under Swiss laws, they can hold a company liable for the inadequate organization. This or failing to take all reasonable measures to prevent a crime from happening, exposing it to criminal liability.