A unit of Swiss bank Credit Suisse Group AG is being investigated by prosecutors in Geneva over whether it failed to stop money laundering in a fraud case linked to defunct asset manager TG Investments, Bloomberg News reported, citing people familiar with the probe.
The unit was added to the probe after two of its former employees were earlier named as suspects in the case, the sources said.
The suspects reportedly include four individuals at Credit Suisse and four at TG Investments, including the latter company's two founding partners who are also former Credit Suisse executives. The two TG partners were charged in 2016 with fraud and criminal mismanagement for trying to conceal losses of at least CHF150 million, Bloomberg noted.
The four Credit Suisse employees were charged with complicity in fraud and money laundering for authorizing trade instructions from TG Investments, which managed money for Turkish clients, in April 2014, according to the report.
Credit Suisse, which was a custodian bank for TG Investments, has rejected any criminal liability and said it will defend against the allegations, the news agency noted, citing an emailed statement from the lender.
The news comes nearly two months after Swiss financial regulator Finma flagged deficiencies in Credit Suisse's anti-money laundering processes in relation to the suspected corruption involving soccer governing body FIFA, Brazilian oil company Petrobras and Venezuelan oil corporation Petróleos de Venezuela SA.
