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June 7, 2018

Credit Suisse to pay $47m fine for corrupt hiring practices in Asia

Credit Suisse has agreed to pay $47m to the U.S. Department of Justice (DOJ) to settle allegations of corruption in its hiring practices in the Asia Pacific region.

The allegations were regarding the recruitments made by the bank between 2007 and 2013 in Asia. The bank will not face any criminal charges in the case.

The bank’s second-quarter results will remain unaffected by the move as it already set aside provisions for the penalty.

“As cited in the agreement, since 2013 Credit Suisse has implemented numerous enhancements to its compliance and controls function and it remains committed to upholding the highest standards of integrity and fair business practices in every jurisdiction in which it operates. This legacy matter did not impact the services provided to any clients, investors or counterparties,” the bank said in a statement.

Credit Suisse first came under the scanner for its recruitment practices in Asia in February this year.

Both the DOJ and the Securities and Exchange Commission (SEC) launched a probe into Credit Suisse, accusing the bank of hiring referrals from government agencies in order to win business and regulatory approvals, thus violating the US Foreign Corrupt Practices Act. The probe by SEC is still on.

JPMorgan too was fined $264m in November 2016 for hiring of ‘princelings’ in China in exchange for business.

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