With the takeover of Credit Suisse, UBS also acquired some clients who did not meet its risk or reputation standards. Now, the US authority responsible for sanctions is reportedly asking the major Swiss bank about its Russian clients.
OFAC is said to have contacted UBS and asked questions about Russian clients.
This is said to include former Credit Suisse customers.
No distinction is made as to whether this refers to individuals, companies or organisations on various sanctions lists. The Swiss and EU lists are harmonised, but differ from those of the UK and the US.
The report goes on to say that an OFAC employee, who requested anonymity, confirmed contacts with the bank and praised the co-operation with UBS.
In recent years, there have been repeated reports of investigations by the US authorities in connection with possible sanctions violations by two major Swiss banks.
In the past, the Russian market has played a more important role for CS than for UBS. From time to time, CS managed funds of Russian clients amounting to 60 billion Swiss francs ($68 billion). Following Russia’s invasion of Ukraine in February 2022, this amount was reduced by about half.
Following the takeover of CS, UBS announced its intention to review certain client relationships. This concerned various areas, not just Russian clients or those associated with sanctions. UBS has stated on various occasions that it has a fundamentally more conservative risk profile and a lower risk appetite compared to CS.
In Switzerland, around 2,250 individuals, companies and organisations are currently on the sanctions list in connection with the situation in Ukraine. Switzerland last accepted the European Union’s (EU) 14th sanctions package in mid-October.
Violation of the sanctions can lead to severe penalties in the US. The French bank BNP Paribas, for example, had to pay around $9 billion in 2014 for sanctions violations in connection with its business with Sudan, Iran and Cuba.
New sanctions against Belarus from the USA, Canada and the UK
