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Bloomberg
Credit Suisse Group AG agreed to pay a $47 million penalty to the US Department of Justice to end a probe into whether it hired employees in Asia in exchange for government contracts and other favors.
Credit Suisse’s Hong Kong unit reached a non-prosecution agreement with the DOJ regarding its recruitment practices in Asia between 2007 and 2013, according to an emailed statement from the Zurich-based bank on Wednesday. The payment will have no material impact on second-quarter results since the bank has already provisioned for the payment, it said.
The settlement resolves another legal issue for Credit Suisse, which has paid roughly $13 billion in fines since 2008. The bank said earlier this year that entities including the DOJ and US Securities and Exchange Commission were investigating whether the bank hired referrals from government and other state-owned entities in
exchange for investment banking business and regulatory approvals, in potential violation of the Foreign Corrupt Practices Act.
The Swiss giant said it has made numerous enhancements to its compliance and control functions since 2013. It added that no criminal charges were brought in the case.
Its Asia-Pacific unit is now a standalone unit under the leadership of Helman Sitohang, one of the results of a three-year strategic overhaul by Chief Executive Officer Tidjane Thiam that has pivoted the bank towards wealth management. Credit Suisse shares rose 0.4 percent to 15.22 francs as of 1:02 p.m. in Zurich and have declined about 11 percent this year.
Credit Suisse is one of several global banks to have been investigated by US authorities over their hiring practices in Asia. Others including JPMorgan Chase & Co. and HSBC Holdings Plc also allegedly hired children of Chinese decision-makers to win business, in violation of anti-bribery laws.