Raiffeisen is struggling to restore its reputation after the scandal surrounding former CEO Pierin Vincenz. On top of that, it now has to contend a breach of the banking secrecy laws.
Switzerland’s third-largest bank last week sent banking statements to 114 clients intended for other clients. Raiffeisen on Monday confirmed reports in the media over the weekend.
The company said that the error was committed at an external service provider. The problem had occurred due to a technical fault, the bank added.
Difficult Timing
And yet, the fault is most embarrassing for the company. Raiffeisen said it had reported the violation of banking secrecy laws with the police – a complaint against perpetrator unknown. It also had informed Finma, the Swiss banking regulator.
The error comes at the worst possible moment as the bank is doing its best to sift through documents relating to the allegations about alleged unfaithful management by its former CEO, Pierin Vincenz. The fallen top manager is still in custody while Raiffeisen tries to restore confidence in the bank, having hired former central banker Bruno Gehrig, a highly respected Swiss financial expert, to lead the internal investigation.
Investigation Ongoing
Finma is proceeding with an enforcement procedure against the bank, an investigation that centers on the bank’s potential failure in corporate governance measures. At the bank, the first to go was Chairman Johannes Rueegg-Stuerm. The compliance department, previously led by Vincenz’ wife Nadja Ceregato was reorganized. Raiffeisen also let Ceregato go.
