ZURICH (SWITZERLAND) – Enforcement proceedings have been opened against Credit Suisse over the espionage affair that ousted the bank’s leadership and marred its reputation, said Swiss financial supervisor FINMA on Wednesday.
The proceedings were initiated after an auditor appointed last December completed its probe into Credit Suisse, which has acknowledged snooping on former wealth management head Iqbal Khan, who is now at UBS, and former human resources boss Peter Goerke.
“FINMA … will pursue indications of violations of supervisory law in the context of the bank’s observation and security activities and in particular the question of how these activities were documented and controlled,” said the watchdog.
Former CEO Tidjane Thiam stepped down in February following the case that cast a shadow over the banking scene in Zurich. He argued that he was in the dark about the espionage activities and acknowledged it caused pain and anxiety.
The bank said it would cooperate with the proceedings “to ensure a complete and expeditious conclusion of the review of this episode and incorporate lessons learned.”
According to the findings of an internal probe conducted by a Zurich law firm last year, the then COO of the bank Pierre-Olivier Bouee began snooping on Khan, who had led Credit Suisse’s wealth management activities, including stalking him on the streets of Zurich to find out if he was trying to poach former colleagues to join him at UBS.