Credit Suisse has been found guilty and penalised for its role in money laundering in connection with a Bulgarian narcotics network. The bank did not do enough to prevent members of the crime syndicate from benefitting from the trafficking of cocaine into Europe, according to Switzerland’s criminal court.
Credit Suisse is the first big Swiss bank to face criminal charges. The bank, which is Switzerland’s second largest bank denies any wrongdoing and has stated that it would appeal the verdict. According to Credit Suisse, the lawsuit stemmed from a 14-year inquiry.
“Credit Suisse is continuously testing its anti-money laundering framework and has been strengthening it over time, in accordance with evolving regulatory standards,” the bank said in a statement in response to the decision.
Elena Pampoulova-Bergomi, a former Bulgarian tennis star who worked at the bank for a while, was found guilty of money laundering by Switzerland’s highest criminal court and handed a 20-month suspended jail term. Her £1.7 million punishment has also been deferred.
The court heard testimony about the bank’s participation in receiving millions of Euros in bank deposits between 2004 and 2008, which it described as “replete with warning flags.” According to prosecutors, Pampoulova-Bergomi had an informal financial contact with former Bulgarian wrestler Evelin Banev, who was a key member in a European cocaine smuggling network.
According to the court, the former tennis player often collected suitcases “full of cash” – some reaching to £400,000 – from persons known to the wrestler.
“The court found deficiencies within the bank with regard to the management of client relations with the criminal organisation. These deficiencies enabled the withdrawal of the criminal organisation’s assets,” the court wrote in a statement.
The conviction was praised by federal prosecutor Alice de Chambrier “good for transparency”.
