Statement in response to the announcement by the Office of the Attorney General of Switzerland

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Press Release

Statement in response to the announcement by the Office of the Attorney General of Switzerland

17.12.2020

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Media Relations
Credit Suisse AG
+41 844 33 88 44
media.relations@credit-suisse.com

Investor Relations
Credit Suisse AG
+41 44 333 71 49
investor.relations@credit-suisse.com

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Credit Suisse takes note with astonishment of the decision of the Office of the Attorney General of Switzerland to bring charges against the bank and other parties in an investigation that has already lasted more than twelve years. The bank rejects the allegations about supposed organizational deficiencies and intends to defend itself vigorously. The Swiss Federal Criminal Court can order the disgorgement of profits and also impose a maximum fine of CHF 5 million in such proceedings.

Since February 2008, the Office of the Attorney General of Switzerland has been conducting criminal proceedings against former Bulgarian clients of Credit Suisse related to allegations of money laundering. The investigation, which relates to the period from 2004 to 2008, was later expanded to include two former Credit Suisse employees. Since 2013, it also encompasses allegations of organizational deficiencies against the bank. Following lengthy proceedings – during the course of which various allegations were dropped and others became time-barred – the Office of the Attorney General has now brought charges against the bank and one former employee, among other parties, on December 17, 2020, and it has terminated the investigation against the second former employee. Credit Suisse unreservedly rejects as meritless all allegations raised against it and is convinced that its former employee is innocent.

These allegations against the bank are refuted and groundless:

A regulatory deep dive report on anti-money laundering prepared in 2004 determined that the bank had complied with the requirements in this field.
In 2016, Credit Suisse commissioned an independent legal review of the allegations against the bank by leading experts in the fields of money laundering prevention and banking supervision, including a former divisional manager at FINMA. These recognized experts concluded that Credit Suisse’s anti-money laundering organizational set-up was correct and appropriate throughout the period in question.
Importantly, these experts pointed out that the Office of the Attorney General assesses the alleged organizational deficiencies based on rules and principles that did not exist at the relevant period or refers to principles that were not applicable or to international standards that have deliberately not been implemented in Swiss law.

To prevail, the Office of the Attorney General of Switzerland would have to prove in court not only that the former employee of the bank is guilty of crimes but also that purported organizational deficiencies at the bank both violated then-applicable requirements and in fact enabled the former employee’s purportedly criminal acts. Credit Suisse will defend itself vigorously against these unfounded allegations. Based on the facts, Credit Suisse expects to prevail when the case is heard by the Swiss Federal Criminal Court. The Swiss Federal Criminal Court can impose a maximum fine of CHF 5 million in such proceedings.

The bank’s anti-money laundering framework has been significantly expanded and strengthened over the last twelve or more years, especially in recent times, in accordance with regulatory developments. Generating compliant growth in line with all legal and regulatory requirements has been and remains an absolute priority for Credit Suisse.

Credit Suisse
Credit Suisse is one of the world's leading financial services providers. Our strategy builds on Credit Suisse's core strengths: its position as a leading wealth manager, its specialist investment banking capabilities and its strong presence in our home market of Switzerland. We seek to follow a balanced approach to wealth management, aiming to capitalize on both the large pool of wealth within mature markets as well as the significant growth in wealth in Asia Pacific and other emerging markets, while also serving key developed markets with an emphasis on Switzerland. Credit Suisse employs approximately 48,800 people. The registered shares (CSGN) of Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Cautionary statement regarding forward-looking information
This document contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to the following:
– our plans, targets or goals;
– our future economic performance or prospects;
– the potential effect on our future performance of certain contingencies; and
– assumptions underlying any such statements.
Words such as “believes,” “anticipates,” “expects,” “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, targets, goals, expectations, estimates and intentions expressed in such forward-looking statements. These factors include:
– the ability to maintain sufficient liquidity and access capital markets;
– market volatility and interest rate fluctuations and developments affecting interest rate levels, including the persistence of a low or negative interest rate environment;
– the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations, in particular the risk of negative impacts of COVID-19 on the global economy and financial markets and the risk of continued slow economic recovery or downturn in the EU, the US or other developed countries or in emerging markets in 2020 and beyond;
– the emergence of widespread health emergencies, infectious diseases or pandemics, such as COVID-19, and the actions that may be taken by governmental authorities to contain the outbreak or to counter its impact on our business;
– potential risks and uncertainties relating to the severity of impacts from COVID-19 and the duration of the pandemic, including potential material adverse effects on our business, financial condition and results of operations;
– the direct and indirect impacts of deterioration or slow recovery in residential and commercial real estate markets;
– adverse rating actions by credit rating agencies in respect of us, sovereign issuers, structured credit products or other credit-related exposures;
– the ability to achieve our strategic goals, including those related to our targets, ambitions and financial goals;
– the ability of counterparties to meet their obligations to us and the adequacy of our allowance for credit losses;
– the effects of, and changes in, fiscal, monetary, exchange rate, trade and tax policies, as well as currency fluctuations;
– political, social and environmental developments, including war, civil unrest or terrorist activity and climate change;
– the ability to appropriately address social, environmental and sustainability concerns that may arise from our business activities;
– the effects of, and the uncertainty arising from, the UK’s withdrawal from the EU;
– the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations;
– operational factors such as systems failure, human error, or the failure to implement procedures properly;
– the risk of cyber attacks, information or security breaches or technology failures on our business or operations;
– the adverse resolution of litigation, regulatory proceedings and other contingencies;
– actions taken by regulators with respect to our business and practices and possible resulting changes to our business organization, practices and policies in countries in which we conduct our operations;
– the effects of changes in laws, regulations or accounting or tax standards, policies or practices in countries in which we conduct our operations;
– the expected discontinuation of LIBOR and other interbank offered rates and the transition to alternative reference rates;
– the potential effects of changes in our legal entity structure;
– competition or changes in our competitive position in geographic and business areas in which we conduct our operations;
– the ability to retain and recruit qualified personnel;
– the ability to maintain our reputation and promote our brand;
– the ability to increase market share and control expenses;
– technological changes instituted by us, our counterparties or competitors;
– the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users;
– acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets; and
– other unforeseen or unexpected events and our success at managing these and the risks involved in the foregoing.
We caution you that the foregoing list of important factors is not exclusive. When evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, including the information set forth in “Risk factors” in I – Information on the company in our Annual Report 2019 and in “Risk factor” in I – Credit Suisse in our 1Q20 Financial Report.

Disclaimer
This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not necessarily a guide to the future. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.

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Statement in response to the announcement by the Office of the Attorney General of Switzerland

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