Will business be done with sanctioned Russians?: UBS now reacts to serious allegations from the USA

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On Thursday, American news agency Bloomberg dropped a bombshell. He wrote that the US Department of Justice has expanded its investigation into UBS and Credit Suisse for alleged violations of Russian sanctions. The news caused UBS shares to fall 7 percent.

UBS has so far remained silent about the Bloomberg report. Now the big bank is taking an official position for the first time. A spokesperson writes to SonntagsBlick: “Recent reports of an alleged US Department of Justice investigation into sanctions-related compliance failures at Credit Suisse and UBS are inaccurate. “We are not aware of such a test.”

The usually well-informed news agency wrote that US authorities launched preliminary investigations into a number of banks at the beginning of the year. These have now evolved into a “comprehensive investigation” (“full-scale investigation”) with Credit Suisse at the centre. The U.S. Department of Justice is also investigating possible compliance violations against UBS. Bloomberg wrote that legal officials contacted UBS lawyers.

But it doesn’t look like what the agency offers. It can be assumed that UBS’s denial was made in consultation with US officials. It therefore seems unlikely that investigations into UBS or CS will be launched immediately.

Americans are increasingly frustrated

Is it all just a storm in a teacup? It is clear that the US judiciary is monitoring very closely how banks apply US sanctions regulations and whether there are any violations. It is also clear that large Swiss banks are especially the center of attention of Americans. Young, career-minded researchers will jump on anything the banks can be blamed on.

Americans are also increasingly angry that Switzerland has not yet joined the G7 working group to monitor Russian funding. Switzerland is not doing enough to impose sanctions on Russia. In this way, Switzerland helps the Kremlin keep its economy afloat despite the restrictions imposed by the USA and its allies due to the invasion of Ukraine.

Former ambassador and American expert Thomas Borer (65) calls for caution. “A US administration with a democratic president is always happy to leave Switzerland behind,” he says. “The USA is still a superpower. If you know this, Switzerland should act accordingly.” There’s always something about Switzerland’s reputation at stake in such disputes. “That’s why the Swiss government should step in and ask the Americans to put the facts on the table,” says Borer, who now works as a consultant.

Borer headed the Swiss-World War II task force in the 1990s and is very familiar with the mechanisms of the US justice system. He believes that the Swiss embassy in Washington is “definitely” in contact with US authorities, explaining to them that “it is important for the Swiss government to obtain documents so that they can launch their own investigations into the suspicious banks”. to be in error.”

CS Russian banker not moving to UBS after all

Credit Suisse is more heavily involved in Russia than UBS. At its peak, it managed $60 billion in assets for Russian clients. After the annexation of Crimea, assets under management dropped to $33 billion. The high turnover is primarily linked to one name: Babak Dastmaltschi. The banker had made a name for himself by keeping an eye on prominent oligarchs close to the Kremlin. Alisher Usmanov was the contact person of Roman Abramowitsch and Viktor Vekselberg.

The plan was for Dastmaltschi to move from CS to a dedicated team at UBS for very wealthy clients who were making international headlines. But nothing comes out. Research has shown that he will stay at Credit Suisse until the end of the year and then retire. Considering the recent developments in the USA, this reversal is not a surprise.

Beat Schmid writes about financial matters at SonntagsBlick.

Source :Blick