Switzerland-based financial services company Credit Suisse Group AG has been hit with accusations of money laundering.
According to a Bloomberg
report, lawyers for Georgian billionaire Bidzani Ivanishvili are battling against the bank because of the way it allegedly handled a wealth manager who made unauthorized transactions in an effort to cover trading losses.
In a criminal complaint, the lawyers allege that the bank did not install suitable procedures to prevent money laundering – instead giving employees the chance to act with complete freedom. The complaint suggests that “numerous acts of money laundering were committed within Credit Suisse”.
It is not the first time that Credit Suisse has been questioned, with the spotlight falling on its wealth management arm. The banker in question, who cannot be named for legal reasons, faces charges of criminal mismanagement and fraud and is currently in detention in Switzerland.
According to Credit Suisse, it is working to assist prosecutors. It has placed the blame on the former employee commenting to Bloomberg
that: “the former relationship manager concealed his deceptions from colleagues and this is, to the best of our knowledge, an individual case.”