Credit Suisse Settles With France Over Cross-Border Private Banking

Tom Burroughes

25 October 2022

announced today that it has reached a financial settlement with Parquet National Financier, the French body that combats serious financial crime, to resolve a legacy matter relating to a probe into historical cross-border private-banking services.

The settlement provides for a public interest fine comprising a profit disgorgement of a €65.6 million ($64.5 million) and a payment of €57.4 million. The Swiss bank will also pay €115 million to the French State as damages.

The settlement/profits disgorgement is another step by Credit Suisse to resolve legal and regulatory issues, some of which go back more than a decade. Last week it resolved litigation relating to the sale of residential mortgage-backed securities. Credit Suisse is battling to restore profitability after a series of losses and missteps that have seen the departure of its CEO – and subsequent replacement, and a restructuring drive.

“The settlement does not comprise a recognition of criminal liability,” Zurich-listed Credit Suisse said in a statement. “The bank is pleased to resolve this matter, which marks another important step in the proactive resolution of litigation and legacy issues.”