By Oliver Hirt, John O’Donnell, Stefania Spezzati and Dave Graham
ZURICH/FRANKFURT/LONDON (Reuters) – The USA is pursuing an inquiry into Russian purchasers that UBS took on when it purchased Credit score Suisse, three folks accustomed to the matter stated, heightening scrutiny of one of many world’s greatest wealth managers.
The U.S. sanctions enforcement company, OFAC, has written to the financial institution as a part of this inquiry, two folks accustomed to the matter informed Reuters. A U.S. official, asking to not be named, stated the Swiss financial institution and the enforcer have held discussions.
OFAC, or the Workplace of International Belongings Management, the globe’s strongest sanctions company, wrote to UBS in current weeks, stated one of many folks.
Spokespeople for UBS and OFAC declined to remark.
The evaluation issues Russian prospects at Credit score Suisse that UBS is now overseeing after rescuing the lender, two of the folks stated. Credit score Suisse, UBS’ smaller Swiss peer, imploded in March 2023 following years of scandals from spying to laundering drug cash.
UBS is looking for to comprise any potential fallout from OFAC’s queries by cordoning off suspect cash and decommissioning the accounts to keep away from the specter of a penalty, a kind of folks stated.
The U.S. makes use of sanctions as a overseas coverage software, imposing restrictions to constrain the actions of countries comparable to Russia and Iran.
Dealing with Russian cash has change into more and more dangerous, after the U.S. and Western allies rolled out an unprecedented internet of sanctions in response to Moscow’s invasion of Ukraine.
Whereas the U.S. official praised UBS for being cooperative, one of many different sources stated it was made clear that failure to cope with the issue could possibly be punished.Regulators in Switzerland have been scrutinizing how UBS is dealing with Credit score Suisse purchasers and the financial institution’s anti-money laundering insurance policies as they fear the Swiss financial institution might find yourself with dangerous purchasers, Reuters has reported.
