Credit Suisse Convicted by Swiss Federal Criminal Court for Money Laundering

Switzerland's Federal Criminal Court has convicted Credit Suisse on money laundering charges and ordered the bank to pay a CHF 2 million fine and a further CHF 19 million in compensation to the government.

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The court heard evidence that one of the bank's relationship managers, a former Bulgarian tennis player named Elena Pampoulova-Bergomi, accepted millions of euros in bank deposits from a Bulgarian cocaine trafficking gang between 2004 and 2008.

The court found that Credit Suisse ignored obvious red flags – including frequent deposits coming into the bank in suitcases"full of cash" – and did not do enough to prevent members of the crime syndicate from profiting from cocaine trafficking into Europe.

Deficiencies were found in how the bank managed client relations, which "enabled the withdrawal of the criminal organisation's assets", the court said, adding that implementation of AML rules were not adequately monitored.

Prosecutors had alleged that Pampoulova-Bergomi helped to conceal the criminal origins of money for clients through more than CHF 146 million in transactions, including CHF 43 million in cash.

Pampoulova-Bergomi was also found guilty of money laundering and received a 20-month suspended prison sentence. Her CHF 2 million fine was also suspended. She also plans to appear the court's ruling.

Credit Suisse has denied wrongdoing and plans to appeal against the ruling. The bank also said it is "continuously testing" its AML framework and has been strengthening it over time, in accordance with evolving regulatory standards.

The case marks the first time a Swiss-owned and domiciled bank has been subjected to criminal proceedings.