Credit Suisse said in a statement on 6 June that its Hong Kong unit had reached a non-prosecution agreement with the DOJ regarding its recruitment practices in Asia between 2013 and 2017.The US investigation looked at whether Credit Suisse hired referrals from government agencies in Asia in exchange for business.
The Zurich-headquartered bank said the payment will have no material impact on its second quarter results as it had set aside money in previous periods to cover the penalty.
Credit Suisse said in the statement: “As cited in the agreement, since 2013 Credit Suisse has implemented numerous enhancements to its compliance and controls function and it remains committed to upholding the highest standards of integrity and fair business practices in every jurisdiction in which it operates.
“This legacy did not impact the services provided to any clients, investors or counterparties.”
The penalty follows Hong Kong’s Securities and Futures Commission hitting Credit Suisse with a HK$39.3m ($5m) fine in February 2018 for internal control failures and selling unsuitable products.
Other banks investigated by US authorities for their hiring practices in Asia include JPMorgan Chase and HSBC, which “also allegedly hired children of Chinese decision-makers to win business, in violation of anti-bribery laws”, according to a Bloomberg report.
In 2016, JPMorgan agreed to pay $264m to resolve the matter.
