CS Credit Suisse Group

By Micah Maidenberg 

Credit Suisse Group AG will pay $77 million for violating antibribery rules in Asia.

Officials from the Justice Department and Securities and Exchange Commission said Thursday that the Switzerland-based bank's Hong Kong unit sought to win banking business in the region by hiring friends and family members of Chinese officials, known as "relationship hires" or "referral hires."

The Hong Kong unit brought on more than 100 people at the request of government officials over a seven-year period ending in 2013, according to the SEC.

Credit Suisse's Hong Kong subsidiary "engaged in a corrupt scheme to win business with Chinese state-owned entities by hiring friends and family of Chinese government officials, generating the bank at least $46 million in profits," said John Cronan, acting assistant attorney general for the Justice Department's criminal division. "These 'relationship hires' often lacked necessary technical skills, and offered fewer qualifications and significantly less relevant banking experience than other candidates for the jobs."

In the SEC portion of the case, the company will pay about $30 million, including returning close to $25 million in profits and nearly $5 million in interest, for antibribery and accounting violations.

In June, the bank's Hong Kong subsidiary reached a nonprosecution agreement with the Justice Department regarding the agency's investigation into its hiring practices in Asia and agreed to pay a $47 million fine.

The bank said it was pleased to have reached an agreement with the SEC.

"The bank has implemented numerous enhancements to its compliance and controls function and remains committed to upholding the highest standards of integrity and fair business practices in every jurisdiction in which it operates," a Credit Suisse spokeswoman said.

Shares in Credit Suisse were up slightly in late-morning trading in New York.

(END) Dow Jones Newswires

July 05, 2018 12:02 ET (16:02 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.