Due Diligence Requirements

Financial services providers play a central role in the national economy. They provide the infrastructure for payment operations and stock exchange transactions, offer capital for investment and assist in the creation and preservation of wealth. Credit Suisse can only perform these functions if it meets the highest standards of due diligence, credibility and trust.

It must, for example, prevent its services from being abused while still respecting the financial privacy of its clients. Strict compliance with "know your customer" rules and Switzerland's stringent due diligence standards is key to combating money laundering and terrorist financing. In addition to verifying the identity of clients, the permanent monitoring of large account movements, the checking of names against lists of suspicious persons and the reporting of suspicious circumstances to the authorities are central to these efforts. Credit Suisse operates a restrictive business policy with regard to politically exposed persons from problematic countries.

Management of environmental and social risks in the lending business

The early identification of environmental and social risks is a key aspect of product development and product enhancement. To avoid credit, liability and reputation-related risks, for example, sensitive transactions undergo a clearly defined process that enables environmental risks to be identified and assessed.

In the case of project finance, the bank applies the Equator Principles. The Principles define a common approach with which to address ecological and social risks in project finance, based on the guidelines of the World Bank Group. The corresponding projects are assigned to different risk categories and further clarification and measures are required, depending on the degree of risk involved. Credit Suisse was one of the ten financial services providers that approved the Equator Principles in 2003. By the end of February 2007, more than 40 banks worldwide had signed up to the Principles.

Responsible conduct

The fight against terrorism, the prevention of money laundering and rules to combat insider trading are a few examples of the complex legislative environment in which financial services providers now operate. Internal compliance units train and monitor employees to ensure that they comply not only with legislation but also with voluntary, self-imposed obligations and internal regulations.

At all of its locations worldwide, Credit Suisse not only adheres to local regulations but also applies Switzerland's strict legislation to combat and prevent money laundering and terrorist funding. To this end, Credit Suisse is involved in the establishment of industry-wide international standards as a member of the Wolfsberg Group, which comprises 12 globally active banks. It also works closely with regulators around the world in order to continuously adapt standards and processes in line with changing conditions.

The economy and human rights

The economy and human rights has become an increasingly important topic in the public debate about internationalization and globalization. Credit Suisse is committed to upholding the principles relating to human rights set out in the UN Global Compact. It is convinced that economic activities help to improve the living conditions of all people if negative effects are identified and rectified or mitigated.