The United States is pursuing an inquiry into Russian clients that UBS took on when it bought Credit Suisse, three people familiar with the matter told Reuters, which heightens scrutiny of one of the world’s biggest wealth managers.
The US sanctions enforcement agency, OFAC, has reportedly written to UBS as part of this inquiry. An anonymous US official confirmed that the Swiss bank and the enforcer have held discussions.
Reuters reports that the review involves Russian clients of Credit Suisse, now managed by UBS after its acquisition of the troubled lender. Credit Suisse, UBS’s smaller Swiss counterpart, collapsed in March 2023 following years of scandals.
UBS is reportedly working to limit potential repercussions from OFAC’s inquiry by isolating suspect funds and closing problematic accounts to avoid penalties. While a US official acknowledged UBS’s cooperation, Reuters noted that UBS was also cautioned that inadequate action on these accounts could lead to punitive measures.
Regulators in Switzerland have also been scrutinizing how UBS is handling Credit Suisse clients and the bank’s anti-money laundering policies, worried the Swiss bank could end up with risky clients, according to previous Reuters reporting.
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- Politico: Ukraine criticizes global body’s failure to blacklist Russia for financial crimes
- Switzerland may reconsider ban on arms re-export to Ukraine
