Credit Suisse Faces Verdict in Cocaine-Cash Trial

Swiss judges are set to rule on the case of Credit Suisse and an employee on the company’s failure to prevent the laundering of money related to cocaine and cash. The bank is accused of allowing the money laundering of tens of millions of euros and failing to prevent the spread of drug-trafficking gangs. A bank employee was convicted of a felony for his role in facilitating the illegal activities of other Credit Suisse employees and the former Bulgarian wrestler Evelin Banev-Brendo.

Swiss prosecutors have not publicly identified the names of the people who were accused of money laundering. A criminal case can only be initiated against a bank if a local prosecutor believes the institution did not screen its employees sufficiently. The former Credit Suisse manager, who can only be identified as E because of reporting restrictions in Switzerland, is suspected of accepting deposits of used bank notes worth 500,000 euros at a time. Such cash deposits were common at the time due to the parsimont state of Bulgarian banks.

In February, the former employee of Credit Suisse was accused of facilitating the movement of nearly CHF19 million from one account to another. Despite the fact that the bank’s anti-money laundering framework had not been in place for more than a decade, the employee had been working for it for only two years. As a result, the presiding judge excluded evidence from before February 2007.

Credit Suisse has pleaded not guilty to the charges, and has said it will appeal the verdict. The court considered the bank’s client relations with a Bulgarian cocaine trafficking gang and its failure to monitor its own anti-money laundering policies. The bank’s failure to prevent money laundering has been seen as a test case for tougher banking laws. Currently the second largest bank in Switzerland, Credit Suisse has suffered billions of dollars due to risk management.

As a result of the scandal, the banking industry in Switzerland has changed and reformed itself. While many people blame banks for the state of affairs, the fact is that they are good capitalists. They aim to maximize their profits within the legal framework. They use historical rates to calculate currency conversions and have adopted know-your-client checks. However, this has not stopped the scandal from spreading to other countries.

As a result, the bank had to freeze the accounts of several of its clients. One of its most prominent clients, Stefan Sederholm, opened a Credit Suisse account in 2008. He was convicted in the Philippines of human trafficking and cocaine. He is still on trial, but he no longer works there. It’s unclear if he will appeal the case.

The two alleged gang members are also facing multiple charges of money laundering. One is being tried for money laundering, while the other is facing drug trafficking. Banev, a former Credit Suisse employee, was arrested in Bulgaria in September and cannot be named because of Swiss privacy laws. In February, his legal representatives denied he had anything to do with the cash laundering and drug trafficking.