Credit Suisse AG OFAC Settlement: $536M (2009)

Credit Suisse had standard procedures for using cover payments to avoid referencing parties subject to U.S. sanctions and omitting information, removing information, or providing incorrect information in payment messages in order to conceal the identities of U.S. sanctions targets — most notably Iran, Sudan, and Libya — in electronic funds transfer instructions executed through the United States on behalf of its bank and non-bank customers, and in securities transactions executed in the United States for a then-designated Libyan state-owned investment company and a bank located in Sudan.

From August 2003 through December 2006, Credit Suisse routed at least 5,138 electronic funds transfers, with an aggregate value of approximately USD 644,258,000, through third-party banks located in the United States, in apparent violation of IEEPA or TWEA and OFAC regulations related to the Iranian Transactions Regulations (31 C.F.R. Part 560), the Burmese Sanctions Regulations (31 C.F.R. Part 537), the Sudanese Sanctions Regulations (31 C.F.R. Part 538), the Cuban Assets Control Regulations (31 C.F.R. Part 515), the now-repealed Libyan Sanctions Regulations (31 C.F.R. Part 550), and the Former Liberian Regime of Charles Taylor Sanctions Regulations (31 C.F.R. Part 593).

From September 2002 through June 2006, Credit Suisse Asset Management London engaged in 176 securities transactions, with an aggregate value of approximately USD 152,300,000, through Credit Suisse Securities (USA) LLC or its predecessor, Credit Suisse First Boston LLC, using code names for the accounts, in apparent violation of IEEPA, the Sudanese Sanctions Regulations, and the Libyan Sanctions Regulations.

The total combined base penalty amount under the Guidelines for all apparent violations was approximately USD 1,703,568,000. Credit Suisse did not voluntarily self-disclose the apparent violations pertaining to the electronic funds transfers under the terms of OFAC's Economic Sanctions Enforcement Guidelines. Credit Suisse Securities (USA) LLC voluntarily self-disclosed the apparent violations pertaining to the securities transactions.

OFAC mitigated the total potential penalty based on Credit Suisse's extensive and substantial cooperation, its remediation, the fact that OFAC had not issued a penalty notice or Finding of Violation against Credit Suisse in the five years preceding the transactions at issue, and Credit Suisse's willingness to enter into tolling agreements with OFAC. Credit Suisse substantially cooperated with OFAC by engaging an independent consulting firm to conduct an extensive review of all applicable incoming and outgoing payment messages during the review period and providing that information to OFAC in a comprehensive and well-organized manner. Mitigation was also extended because Credit Suisse agreed to settle the allegations of violations.

As part of a global settlement with OFAC, the U.S. Department of Justice, and the New York County District Attorney's Office, Credit Suisse agreed to pay an aggregate amount of USD 536,000,000. No separate OFAC-only amount is stated in the source.

Credit Suisse's settlement with OFAC is part of a global settlement among Credit Suisse, OFAC, the U.S. Department of Justice, and the New York County District Attorney's Office, addressing the OFAC allegations and charges arising out of the same underlying conduct. The Board of Governors of the Federal Reserve System issued a consent Cease and Desist Order against Credit Suisse in connection with the case, requiring the bank to implement an enhanced global regulatory compliance program. The Swiss Financial Market Supervisory Authority, as Credit Suisse's home country supervisor, agreed to assist the Board of Governors in the implementation and supervision of the Order.

Credit Suisse terminated the alleged illegal activities, cooperated fully with OFAC, and undertook substantial remedial steps, including engaging an independent consulting firm to conduct an extensive review of all applicable incoming and outgoing payment messages during the review period and providing that information to OFAC in a comprehensive and well-organized manner. Credit Suisse will also implement an enhanced global regulatory compliance program as required by the Federal Reserve's consent Cease and Desist Order.

This page summarizes an OFAC enforcement case based on the document archived below. SanctionsLookup assumes no liability for errors, omissions, or inaccuracies in the original documents, this summary, or any changes made to the source documents at any time.

Provided for informational purposes only and does not constitute legal or compliance advice. Always consult the source document directly rather than relying on this summary.