Credit Suisse to Pay U.S. Over Hiring in Asia--2nd Update
June 06 2018 - 2:10PM
Dow Jones News
By Anthony Shevlin
Credit Suisse Group AG will pay about $47 million to settle a
U.S. Justice Department probe of whether its hiring practices in
Asia violated a U.S. antibribery law.
The lender said in its 2017 annual report that it was
cooperating with inquiries by the Justice Department and the
Securities and Exchange Commission into whether it had hired
"referrals" from government agencies and state-owned entities in
exchange for investment-banking business or regulatory approvals,
potentially breaching the Foreign Corrupt Practices Act.
The law forbids bribing foreign officials to win or maintain a
business advantage.
Credit Suisse said Wednesday that its Hong Kong unit has reached
a nonprosecution pact with the Justice Department relating to
hiring practices in the Asia-Pacific region between 2007 and 2013.
A bank spokesman said the deal settles the Justice Department
probe, but not the SEC inquiry. He declined to comment on prospects
for a settlement with the SEC.
The Justice Department declined to comment. The SEC declined to
comment.
The bank said it would pay a penalty of about $47 million to the
Justice Department, and has already taken provisions for that sum
in previous periods. The penalty will have no material effect on
the company's second-quarter financial results, it said.
Credit Suisse said no criminal charges have been brought and
that the matter didn't affect the services provided to clients,
investors or counterparts. It said it has implemented different
improvements to its compliance and controls function since
2013.
--Henry Cutter contributed to this article.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com
(END) Dow Jones Newswires
June 06, 2018 13:55 ET (17:55 GMT)
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