UBS takes Credit Suisse’s place in the Bulgaria appeal process
Published: Friday, Sep 27th 2024, 09:40
Updated At: Tuesday, Oct 1st 2024, 04:50
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The appeal trial for qualified money laundering in connection with funds from the Bulgarian mafia begins at the Federal Criminal Court on Tuesday. Following the takeover of Credit Suisse, UBS is now on trial alongside two other defendants.
UBS recently tried to have the proceedings against it dropped. The bank argued that the takeover of Credit Suisse should have the same consequences as the death of a natural person in proceedings. In other words, the disappearance of the number two in the banking industry should make the prosecution lapse.
In a decision in mid-August 2024, the Appeals Chamber of the Federal Criminal Court rejected this view. It emphasized that the merger agreement not only provided for the takeover of Credit Suisse's managed capital, staff and business premises, but also its position in all court, arbitration and administrative proceedings.
UBS announced last week that it intends to defend itself vigorously. It confirmed that it would continue with its appeal, as it had indicated after receiving the reasoned decision of the first instance in October 2023.
The Banev clan
At the end of June 2022, Credit Suisse was sentenced in the first instance to a fine of CHF 2 million and to pay a compensation claim of CHF 19 million. This corresponds to the amounts that escaped confiscation due to its omissions. The bank was found guilty of qualified money laundering because it had accepted funds from Evelin Banev's clan.
The four other defendants received conditional or partially conditional sentences in the first instance proceedings. One of the defendants, a former Credit Suisse fund manager, has since died.
The bank and two of the three remaining defendants appealed against the verdict. The Office of the Attorney General of Switzerland (OAG) lodged a cross-appeal, but this only concerns the judgment in relation to the bank. Before the Criminal Chamber, it had demanded the statutory maximum fine of CHF 5 million and a claim for compensation totaling CHF 41 million for the bank. (Case CA.2023.20)
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