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Credit Suisse shares fall after FINMA anti-money laundering criticism

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Credit Suisse shares are in the red Monday, after the Swiss financial regulator, FINMA, said the investment bank had failed to properly monitor, detect and manage financial corruption among some of its clients. The bank said it is already undertaking actions to improve the areas detailed as deficient in the report.

By 1240 BST, Credit Suisse shares were down 0.31% at CHF14.42. The stock has been moving broadly lower in recent weeks.

Credit Suisse anti-money laundering failings

FINMA Monday published a report on Credit Suisse, detailing its anti-money laundering failings and requesting the investment bank to improve its measures in these areas. FINMA has also set a third-party to oversee the bank’s new anti-financial corruption measures.

The financial watchdog has found failings in two specific instances.

One related to its adherence to due diligence with regards possible corruption with regards FIFA, Petrobas and PDVSA.

The second identified deficiencies relating to dealings with a politically exposed person.

“Credit Suisse AG must remediate the relevant control systems and processes, and so prove that higher-risk business relationships and transactions are adequately detected, categorised, monitored and documented,” FINMA said, detailing the conclusion of its investigations.

Legacy issues

In response to the findings and action from FINMA, Credit Suisse said that it had already taken action on the areas found to be less than adequate. In addition, the investment bank said the findings related predominantly to legacy issues. The FINMA review covered cases between 2006-2014.

“Credit Suisse has taken note of today’s announcement by FINMA and acknowledges the conclusions it has reached regarding our bank as part of an ongoing review of legacy cases across the Swiss banking sector,” the Bank said in a release.

“Implementing a culture of compliant growth at Credit Suisse is our highest priority and it is an individual and collective responsibility that we take extremely seriously. We will continue to work closely with FINMA to complete the changes that are underway and implement additional measures,” Credit Suisse added.

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