Australia’s biggest bank has admitted its chief executive breached anti-money laundering rules after admitting he used the company’s HSBC account to transfer money.
Key points:Hamburg-based Credit Suisse and Credit Suép, which together manage $4.3 trillion in assets, have both been accused of laundering money for drug cartels and organised crimeThis means money laundering is a big problem in AustraliaThe bank also admitted it had broken rules when it admitted to transferring money to the accounts of the people in question, and it’s understood the money was spent on illegal activities.
The Australian Financial Review reports Credit Suse has agreed to pay more than $1.2 million in fines for the breach, which has seen it pay $1 million in legal costs.
The bank admitted it breached anti bank money laundering laws by transferring money from the accounts to accounts controlled by drug traffickers, and by sending money to people who were not registered as taxpayers in Australia.
It has also agreed to a $1-million penalty.
A spokesman for Credit Suise, which is based in Hamburg, Germany, said in a statement the bank’s board and management had been informed of the findings.
“We are deeply saddened to learn of this matter,” he said.
“The bank’s conduct has been unacceptable, and we have already agreed to fully repay all amounts due to the breach.”
The bank said it will pay the legal costs incurred.
Hamburans were outraged by the findings of the bank, which came to light after the Financial Review published the accounts.
“Credit Suisse is a giant that’s controlled by people who are in the drug trafficking business,” said Josef Sotelo, president of the local branch of the National Drug Information Network (NDIN) in Hamburg.
“They are using the banking system as a conduit to transfer large sums of money.”
The ICIJ’s investigation has uncovered evidence that Credit Suesse laundered $4 billion through the company, which includes the world’s biggest banking and investment firm.
The scandal is just one of many that have plagued Credit Suese and other banks, which have seen the number of reports of money laundering incidents rise to an all-time high.
In the latest case, a bank in the United States admitted to laundering money by transferring $1 billion to accounts held by the people who ran the online poker site PokerStars.
The US Attorney for the Southern District of New York, Carmen Ortiz, announced charges against the banks on Monday.
“PokerStars and its principals committed fraud and money laundering by knowingly transferring millions of dollars from American citizens, many of whom were American citizens and who had not been convicted of any crimes, to the account of a gambling website that used its account for gambling services,” Ortiz said in her statement.
In Australia, Credit Suès has agreed a $750 million fine for the bank breach.
The Australian Securities and Investments Commission (ASIC) has been investigating the bank for two years.
It found that the bank did not have a plan to prevent or detect money laundering activities, and the bank was not required to report suspicious activity.
Topics:financial-market,business-economics-and-finance,consumer-fears-andprices,industry,consumer,australiaFirst posted June 21, 2019 07:52:03Contact Ben SmithMore stories from New South Wales