Credit Suisse to Pay U.S. Over Hiring in Asia

By Anthony Shevlin 

Credit Suisse Group AG will pay about $47 million to settle a U.S. Justice Department probe of whether its hiring practices in Asia violated a U.S. antibribery law.

The lender said in its 2017 annual report that it was cooperating with inquiries by the Justice Department and the Securities and Exchange Commission into whether it had hired "referrals" from government agencies and state-owned entities in exchange for investment-banking business or regulatory approvals, potentially breaching the Foreign Corrupt Practices Act.

The law forbids bribing foreign officials to win or maintain a business advantage.

Credit Suisse said Wednesday that its Hong Kong unit has reached a nonprosecution pact with the Justice Department relating to hiring practices in the Asia-Pacific region between 2007 and 2013. A bank spokesman said the deal settles the Justice Department probe but not the SEC inquiry. He declined to comment on prospects for a settlement with the SEC.

The Justice Department declined to comment. The SEC didn't immediately respond to a request for comment.

The bank said it would pay a penalty of about $47 million to the Justice Department, and has already taken provisions for that sum in previous periods. The penalty will have no material effect on the company's second-quarter financial results, it said.

Credit Suisse said no criminal charges have been brought and that the matter didn't affect the services provided to clients, investors or counterparts. It said it has implemented different improvements to its compliance and controls function since 2013.

Write to Anthony Shevlin at [e-mail]

(END) Dow Jones Newswires

June 06, 2018 13:32 ET (17:32 GMT)

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