Federal prosecutors in Switzerland are reportedly seeking more than $45 million in compensation from Credit Suisse over its alleged failure to prevent money laundering by a Bulgarian drug ring.
Credit Suisse is set to face more legal challenges with the latest move by Swiss federal prosecutors to seek more than 42 million francs ($45 million) in compensation over «serious organizational shortcomings» in preventing money laundering, according to a «SonntagsZeitung» (behind paywall, in German) report citing a 500-page document.
According to the prosecutors, the drug mafia – led by Evelin Banev, an ex-wrestler nicknamed Bulgaria's «Cocaine King» – deposited around 55 million Swiss francs at Credit Suisse, much of it via suitcases with unbundled notes delivered by hand.
Prosecutors are also targeting a former Credit Suisse for her role in the affair.
Second Bank Case
Alongside the now-defunct Falcon for its dealings in the 1MDB scandal, Credit Suisse will become only the second bank to ever be taken to court by Swiss federal prosecutors after a 14-year investigation into the money laundering case.
«[Credit Suisse] unreservedly rejects as meritless all allegations in this legacy matter raised against it and is convinced that its former employee is innocent,» the bank said on the Swiss case. «The bank will defend itself vigorously in court.»
Credit Suisse has already set aside an additional 500 Swiss francs for litigation this year, in part for a separate case to recoup $440 million from Softbank over the collapse of Greensill supply chain funds.
