U.S. Scrutinizes Russian Accounts UBS Took Over From Credit Suisse

The United States is investigating Russian clients inherited by UBS following its acquisition of Credit Suisse, heightening scrutiny on one of the world’s largest wealth managers, Reuters reporters Oliver Hirt, John O’Donnell, Stefania Spezzati, and Dave Graham wrote.

The review focuses on Russian customers previously served by Credit Suisse, whose accounts UBS inherited after rescuing the troubled lender in March 2023. I Photo: UBS

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), which enforces sanctions globally, has contacted UBS as part of the inquiry, according to two individuals familiar with the matter.

A U.S. official, speaking on condition of anonymity, confirmed that discussions between the Swiss bank and OFAC have taken place. One of the sources revealed that OFAC wrote to UBS in recent weeks.

The review focuses on Russian customers previously served by Credit Suisse, whose accounts UBS inherited after rescuing the troubled lender in March 2023. Credit Suisse collapsed following years of scandals, including allegations of corporate espionage and laundering drug money.

UBS is taking measures to mitigate any fallout from OFAC’s investigation by isolating suspect funds and decommissioning accounts linked to questionable activity, one source said.

These actions aim to shield the bank from potential penalties associated with sanctions violations.

Sanctions have become a critical tool in U.S. foreign policy, with measures targeting nations like Russia and Iran to curb their geopolitical activities. OFAC plays a central role in ensuring compliance with these restrictions.