March 16, 2016
Lawyers for a Georgian billionaire accused Credit Suisse Group AG of money laundering as they step up their fight with the Swiss bank over its handling of a former wealth manager who allegedly made unauthorized transactions to cover up trading losses.
Bidzina Ivanishvili’s lawyers filed the criminal complaint with Geneva prosecutors Tuesday, alleging that the bank failed to install adequate procedures to prevent money laundering, allowing employees to act with complete freedom. The complaint is based on hearings, a review of the evidence as well as information received from MROS, Switzerland’s Money-Laundering Reporting Office, the lawyers wrote.
The complaint is at least the second to target Credit Suisse in a widening scandal that has put the spotlight on its wealth management unit and what it knew about allegations made by Ivanishvili and two other Russian clients about improper trading dating back to 2007. The Geneva banker — who can’t be named under Swiss law — has been charged with fraud and criminal mismanagement by Geneva prosecutors and is in detention in the Swiss canton as the Frenchman is considered a flight risk to France.