US checks russian accounts in Switzerland's largest bank

U.S. officials who monitor compliance with sanctions against russia and other countries have begun to take a closer look at the accounts of russian clients who moved to Switzerland's largest bank, UBS, after it bought Credit Suisse.

The Office of Foreign Assets Control (OFAC) has sent a letter to the bank as part of this investigation, the media outlet's sources said. The American official, speaking on condition of anonymity, said that the Swiss bank and the agency have already held talks.

According to the source, the bank, headed by CEO Sergio Ermotti, is reviewing Credit Suisse's books, removing unwanted clients and assets, including those related to russia.

Those who fall under US sanctions - for example, a bank that makes a payment for a sanctioned person - may be fined.

It is not known how much money of russian origin is currently held at UBS. In 2022, the then-CEO of Credit Suisse reported that 4% of the money managed by the bank belonged to russian clients, equivalent to about $35 billion.

UBS is seeking to contain any potential fallout from OFAC's queries by cordoning off suspect money and decommissioning the accounts to avoid the threat of a penalty.

Handling russian money has become increasingly risky after the United States and Western allies imposed sanctions in response to moscow's invasion of Ukraine.

Credit Suisse, now owned by UBS, went bankrupt in March 2023 after years of scandals ranging from espionage to money laundering from drug sales.

As Ukrinform reported, Swiss banks have begun closing accounts for clients with russian citizenship, even if they simultaneously hold a passport of another country.

Source: Reuters