Compliance
Switzerland Starts Enforcement Proceedings Against Credit Suisse Over Spying

The bank still faces further issues after a scandal in which it spied on one of its senior figures who was moving to a rival bank. The chief operating officer was ousted, and last year former CEO Tidjane Thiam stood down after a four-year stint.
The Swiss financial watchdog FINMA today announced that it
has started enforcement proceedings against Credit Suisse after it
spied
on former employees resulting in the
departure of ex-chief executive officer Tidjane Thiam.
The Zurich-listed bank last year became embroiled in a scandal
after it emerged that former chief operating officer
Pierre-Olivier Bouee had authorised agents to follow Iqbal Khan,
a senior banker who had left to join rival UBS. It emerged that
Credit Suisse’s former human resources head, Peter Goerke, had
also been monitored.
Last year Thiam resigned from his post and Thomas Gottstein, who
had been at the bank for two decades, took over as CEO. Thiam,
born in the Ivory Coast, had joined Credit Suisse in 2015, having
been CEO of the UK’s Prudential. During his watch, Credit
Suisse’s fortunes improved, with the bank restructuring certain
business lines and increasing its Asia focus.
An internal Credit Suisse investigation found that Thiam was
unaware of the spying, and Bouee was dismissed.
Last December, the Swiss Financial Market Supervisory Authority,
aka FINMA, started an investigation into the episode and
appointed an independent auditor to clarify corporate governance
questions and the use of electronic communications in connection
with the spying.
“The auditor’s investigation has now been completed. FINMA has
opened enforcement proceedings against the bank, in which it will
pursue indications of violations of supervisory law in the
context of the bank’s observation and security activities and, in
particular, the question of how these activities were documented
and controlled,” the regulator said in a statement
today.
“FINMA will inform the public about the conclusion of the
enforcement proceedings. It will not comment further on the
content of the ongoing proceedings or the date when the
proceedings may be concluded. Typically, such proceedings can be
expected to take several months,” the watchdog added.
The bank said it noted the decision by FINMA and will continue to
fully cooperate with the regulator.
“The board of directors and the executive board of Credit Suisse
agree and unequivocally affirm that the observation of employees
is not part of the culture of Credit Suisse,” it said, adding it
could not comment further at this stage.