MAS fines Credit Suisse $3 million for failing to monitor Singapore management | News Summary

December 29, 2023

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The fine, announced Thursday, stems from allegations that Credit Suisse relationship managers provided false or inaccurate information to private banking customers in post-trade disclosures affecting 39 over-the-counter bond transactions. This was imposed after MAS found that the company had omitted important information. The fraud was uncovered during a MAS investigation into pricing and disclosure practices in the private banking industry.

Credit Suisse admitted liability and paid a fine as part of the settlement, MAS said.

Compliance considerations: MAS found that the bank did not have adequate controls in place, such as post-transaction monitoring, to detect or prevent fraud. The bank “has since strengthened its internal controls to prevent a recurrence of such misconduct,” the regulator said.

“Financial institutions must have robust governance frameworks and processes in place to ensure fair and transparent pricing for their customers,” Ho Han Shin, deputy managing director for financial supervision at MAS, said in a release. There is a need to do so.” “We will continue to press banks to improve their controls in this area and will not hesitate to take strong enforcement action against financial institutions found to have breached our laws.”

In October, Credit Suisse was reported to have been warned that it was being investigated by the MAS for possibly failing to properly monitor high-net-worth clients involved in a $2 billion money laundering scandal. .

In March, Swiss regulators ordered Credit Suisse to merge with larger competitor UBS amid the financial turmoil caused by the collapse of U.S. banks. On December 7, the two banks announced a definitive merger agreement.

UBS did not respond to a request for comment.

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