Context
In October 2021 the FCA published details of a £147.2m fine it imposed on Credit Suisse. The fine related to failings over a three and a half year period to sufficiently prioritise the mitigation of financial crime risks, including corruption risks, within its Emerging Markets business. Credit Suisse failed to meet its regulatory obligations, breaching Principle 3 (by failing to take reasonable steps to manage and control its affairs), SYSC 6.1.1R (by failing to maintain adequate policies and procedures to counter the risk it would be used to further financial crime) and Principle 2 (by conducting its business without skill, care and diligence).
Key points to note and next actions
- The FCA has now banned two former Credit Suisse Managing Directors for lacking integrity, following US convictions for arranging corrupt loans to the Republic of Mozambique.
- In July 2019, Andrew Pearse pleaded guilty in the US for his role in the conspiracy to commit money laundering and wire fraud, which included him accepting over US$45m in unlawful kickbacks in connection with the loans.
- In September 2019, Surjan Singh also pleaded guilty in the US for his role in the conspiracy to commit money laundering, which included him accepting US$5.7m in unlawful kickbacks in connection with the loans.
- Steve Smart, joint executive director of enforcement and market oversight at the FCA said “Mr Pearse and Mr Singh were experienced executives at Credit Suisse who admit to having received over US$50m in kickbacks. There is no place in our markets for those who engage in bribery and corruption”’