Zurich, June 6, 2018 – Credit Suisse Hong Kong Ltd (Credit Suisse) is pleased to have entered into a non-prosecution agreement with the Department of Justice (« DoJ ») to resolve its investigation into recruitment practices in the Asia-Pacific region between 2007 and 2013. In recent months, a hundred banks have gone to great lengths to meet the program`s requirements and reach a non-repressive agreement with the DoJ. The SBA expects the Tier 2 banks to also reach a swift agreement in line with the principles of fairness and proportionality. But the wait should not be too long. The next step will be to process applications from Category 3 and 4 banks. These investigations will continue until mid-2015. In accordance with Monday`s approval regulations, the monitor will audit and report on corporate governance and be selected by the New York regulator. The monitor can be turned on for up to two years. He will pay a $715 million fine as part of the deal with Lawsky`s office. Last Thursday, sources familiar with the discussions said the bank had reached an agreement in principle with prosecutors, which agreed to a fine of about $US 2 billion, including $US 100 million to the U.S. Federal Reserve and a $US 200 million loan for the SEC`s February comparison on related activities. Last October, Kathryn Keneally, the director of the Justice Department`s tax department, called the bank`s lawyers to say she was ready to recommend prosecution, the source said. In Switzerland, violating bank secrecy can mean fines and up to three years in prison, although the Swiss government has announced that it will relax these laws and enter into data exchange agreements with its neighbors if it becomes a global norm.
The ministry and the CSHK entered into a non-prosecution agreement, and CSHK agreed to pay a fine of US$47,029,916 to resolve the issue. As part of the agreement, CSHK and its parent company Credit Suisse AG have also agreed to continue to cooperate with the Department in ongoing investigations and prosecutions of conduct, to improve their compliance programs, and to report to the department on the implementation of their enhanced compliance programs. The Ministry reached this solution on the basis of a number of factors, including the issue that CSHK did not voluntarily and timely disclose the conduct at issue.