Credit Suisse Found Guilty in Cocaine Cash Laundering Case

    Credit Suisse Found Guilty in Cocaine Cash Laundering Case
    Photo: Reuters [via New York Post]

    The Facts

    • Credit Suisse, Switzerland's second-largest bank, has been found guilty and fined by Switzerland's Federal Criminal Court for its involvement in money laundering relating to a Bulgarian drug ring. The court also found a former employee guilty of money laundering.

    • The prosecutors allege that the former employee, Elena Pampoulova-Bergomi, a former Bulgarian tennis player, had built an informal financial relationship with former Bulgarian wrestler Evalin Baney, who was a major figure in a European cocaine smuggling ring. The bank accepted millions of Euros in bank deposits between 2004 and 2008.

    The Spin

    Establishment-critical narrative

    It's a historic court decision when Switzerland's second-biggest bank stands trial for money laundering. In Switzerland, bank secrecy laws result in a low general level of transparency. This court decision is a wake-up call and can hopefully lead to increased measures against financial crimes in Switzerland. Finally, financial institutions are facing accountability.

    Pro-establishment narrative

    This is an old case, originating a decade and a half ago. Like all banks, Credit Suisse is continuously testing its anti-money-laundering framework and has been strengthening it over time. The bank will simply follow the legal process and appeal the court's decision.

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