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The US Department of Justice (DOJ) has been enforcing sanctions since Russia invaded Ukraine to prevent financial institutions from aiding Russian citizens. Numerous financial institutions, including cryptocurrency companies, have recently been the target of legal action by US authorities, which has resulted in substantial fines.
This time, the DOJ is looking into two Swiss financial institutions to see if the financial channels assisted Russian customers to avoid implied sanctions: Credit Suisse Group AG and UBS Group AG. Bloomberg reports that the US government has just sent these financial companies with subpoenas, which are court orders requiring information.
The article also states that subpoenas were sent prior to UBS’s acquisition of Credit Suisse, and it adds that other major institutions also got subpoenas from US authorities during the same round.
The purpose of the DOJ’s investigations into the platforms is to ascertain whether bank employees helped sanctioned individuals and how they were vetted during the last several years. Any found to be in violation of federal laws will be given a closer examination by US authorities.
Credit Suisse was seen as a trustworthy platform that catered to Russians before the conflict between Ukraine and Russia erupted. Notably, the Swiss Bank managed over $60 billion in assets and, at its height of prosperity, generated between $500 million and $600 million annually from Russian clients.
Additionally, Credit Suisse, a Swiss financial institution, had more than $33 billion in assets from Russian citizens when it ended its business relations with Russia in May 2022. The company managed a sizable portion of the world’s wealth, compared to its rival UBS, which only controlled less than half of these assets.
Previously, BNP Paribas admitted guilt and agreed to pay $9 billion in fines after being accused of processing transactions with businesses from sanctioned regions. Iran, Sudan, and Cuba were among the sanctioned nations that the Paris-based BNP Paribas enabled at the time.
For a few years prior, the US government repeatedly put sanctions on Russia. Even the Treasury Department targeted Russian oligarchs and members of Vladimir Putin’s inner circle in order to ratchet up sanctions against them.
After the crisis between Ukraine and Russia, the DOJ created a specialized task force called “KleptoCapture.” The team’s mission was to carry out the implied sanctions on Russian oligarchs.
The Treasury Department reported last month that the authorities have seized more than $58 billion from oligarchs all around the world. Six residences in New York and Florida valued at $75 million, as well as two opulent ships in San Diego and Fiji, totaling $600 million, were seized. Viktor Vekselberg, a single oligarch, was the owner of all of these resources.
