Credit Suisse Found Guilty in Cocaine Cash Laundering Case

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Facts

  • Credit Suisse, Switzerland's second-largest bank, has been found guilty and fined by Switzerland's Federal Criminal Court for its involvement in money laundering relating to a Bulgarian drug ring. The court also found a former employee guilty of money laundering.1
  • The prosecutors allege that the former employee, Elena Pampoulova-Bergomi, a former Bulgarian tennis player, had built an informal financial relationship with former Bulgarian wrestler Evalin Baney, who was a major figure in a European cocaine smuggling ring. The bank accepted millions of Euros in bank deposits between 2004 and 2008.2
  • The court fined Credit Suisse $2.1M, for their failure to prevent money laundering, and confiscated $12M worth of deposits linked to the criminal organization. The court also ordered that the bank pay $19M in compensatory claims.3
  • Credit Suisse and the former employee have rejected all allegations and denied any wrongdoing. The bank said it would appeal against the conviction.4

Sources: 1New York Post, 2BBC News, 3Associated Press and 4Business Standard News.

Narratives

  • Establishment-critical narrative, as provided by OCCRP. It's a historic court decision when Switzerland's second-biggest bank stands trial for money laundering. In Switzerland, bank secrecy laws result in a low general level of transparency. This court decision is a wake-up call and can hopefully lead to increased measures against financial crimes in Switzerland. Finally, financial institutions are facing accountability.
  • Pro-establishment narrative, as provided by New York Times. This is an old case, originating a decade and a half ago. Like all banks, Credit Suisse is continuously testing its anti-money-laundering framework and has been strengthening it over time. The bank will simply follow the legal process and appeal the court's decision.