Credit Suisse, the second-largest Swiss bank will face money laundering charges in a Swiss court on Monday. They are allowing alleged Bulgarian cocaine trafficking gangs to launder millions, stuffed into suitcases. Here’s the full story.
Credit Suisse to face money laundering charges
This is the first criminal trial of a major Swiss bank and prosecutors are seeking compensation of around $45.8 million. The case is attracting a lot of interest in Switzerland as a test for tough stance by prosecutors against a nation’s bank. According to Swiss prosecutors, Credit Suisse and its former relationship managers did not take the necessary steps for preventing the alleged traffickers from laundering cash between 2004 and 2008. “Credit Suisse unreservedly rejects as meritless allegations in this legacy matter raised against it and is convinced that its former employee is innocent,” stated the bank officials. The prosecutors added that it will defend itself “vigorously”.
The accusation running over 500 pages centers on the relationship that the bank and its ex-employee had with Evelin Banev, a former Bulgarian wrestler, and his associates. Additionally, a second accusation is presently based for Julius Baer, a former relationship manager helping with money laundering. According to a legal representative of the ex-employee who wishes to stay anonymous, the case was unjustified. They added that their client denied downing anything unlawful. However, the lawyer representing two of the alleged gangs declined to comment. They are facing several counts of misappropriation, forgery, and the grounding of documents in Switzerland’s federal court.
Banev does not face criminal charges in Switzerland but was convicted for drug trafficking in Italy back in 2017. He was also convicted in Bulgaria in 2018 for being part of an active organization involved in drug trafficking. The group is also on Interpol’s red list for wanted persons. Both Banev and his legal representation couldn’t be reached for comment. A former lawyer who presented him in his trial in Bulgaria declined to comment.
How did money laundering took place?
“The former Credit Suisse employee brought at least one Bulgarian customer who was an associate of Banev with her when she joined Credit Suisse in 2004,” alleged the prosecutor. The Bulgarian customer was later shot dead in 2005 when he was leaving a restaurant along with his wife, he had started placing suitcases filled with cash in a Credit Suisse safe deposit according to the indictment. They are also alleging that the gang was smurfing. It is the breaking down of a large sum of money into smaller amounts, ensuring that it is below the anti-money laundering threshold. The money was used for laundering hence putting millions of euros in smaller bills and then into safety deposit boxes, it was later transferred to accounts.
Due to international pressure, private banks in Switzerland have adopted stricter measures and tightened laws to ensure money laundering does not take place. But, the defendants claim it
