Banks slated over lost millions
2000-09-04 18:45
Bern - Swiss bank regulators condemned six banks on Monday for ignoring
money-laundering rules when handling funds embezzled by former
Nigerian leader Sani Abacha.
The Swiss Federal Banking Commission (SFBC) identified in a report
six banks which had been seriously at fault in exercising due
diligence.
Three institutions of the Credit Suisse Group (Credit Suisse,
Banque Hofmann and Banque Leu), Credit Agricole Indosuez
(Switzerland), Union Bancaire Privee and M M Warburg Bank
(Switzerland) "were all at fault", according to the CFB.
The Credit Suisse Group is understood to have accepted up to 368
million Swiss Francs ($214 million) of suspect money,
according to the commission.
However, the failure by banks to respect obligations of due
diligence "was not so serious as to make decisive measures
essential", the report said.
The commission studied the business procedures of a total of 19
Swiss banks that did business with Abacha and his entourage.
The SFBC indicated violations of regulations concerning suspect
funds "of a less serious nature" in six other establishments.
The Swiss Bankers Association (ASB), based in Basel said that the
affair was "extremely regrettable and tarnished the reputation of
the Swiss financial market".
The ASB said that the SFBC report had revealed "serious
deficiencies and individual failings, even serious dysfunction"
within the five banks that came in for the heaviest criticism.
In its report the SFBC recognised that Swiss banks respected the
requirement under Swiss law on money-laundering, which obliges
banks to inform the authorities if they suspect funds could come
from a criminal source. - Sapa-AFP
- SAPA