Russian branch of Credit Suisse reportedly investigates mirror trades

Maria Nikolova

The internal investigation concerns two of the bank’s employees and a number of external financiers, according to Forbes.

Swiss bank Credit Suisse is allegedly conducting an internal probe into its Moscow office, with the investigation concerning mirror trades.

According to a report in the Russian edition of Forbes, citing sources in the bank, the probe has started not later than December 2016. Credit Suisse is investigating two of its own employees, engaged in treasury operations in the Russian office, as well as a number of external financiers, including the activities of a broker.

One of the counter-agents of Credit Suisse claims that the volume of deals investigated is up to tens of millions of dollars a day.

Credit Suisse has refused to comment (to “Forbes”) on the investigation of its employees.

The report comes less than a fortnight after regulators on both sides of the Atlantic sanctioned Deutsche Bank AG (ETR:DBK) for Russian mirror trades.

On January 30, 2017, the New York State Department of Financial Services (DFS) announced that Deutsche Bank and its New York branch will have to pay a $425 million fine and hire an independent monitor under a consent order entered into with the DFS.

The sanctions stemmed from findings that Deutsche Bank has violated New York anti-money laundering laws via a “mirror trading” scheme involving the bank’s Moscow, London and New York offices. As a result, $10 billion were laundered $10 billion out of the Russian Federation.

Operating through the equities desk at Deutsche Bank’s Moscow branch, a number of companies that were clients of the Moscow equities desk issued orders to buy Russian blue chip stocks, paying in Russian rubles. Shortly after that, a related counterparty would sell the identical Russian blue chip stock in the same quantity and at the same price through Deutsche Bank’s London branch. The counterparties involved were linked, whereas the trades were usually cleared through Deutsche Bank Trust Company of the Americas (DBTCA). The selling counterparty was typically registered offshore and would be paid for its shares in US dollars.

Today, FinanceFeeds received a statement from Credit Suisse, which stated the following: “We do not have any investigations into alleged mirror trading in the Moscow office,” counteracting what is stated on the report.

On January 31, 2017, the UK Financial Conduct Authority (FCA) imposed a fine of more than £163 million on Deutsche Bank over AML failures. The UK regulator accused the bank of failing to maintain adequate AML controls between January 1, 2012 and December 31, 2015. This is the severest financial penalty for AML controls failings ever imposed by the UK financial regulator.

Read this next

Digital Assets

Himalaya Exchange customers seek release of frozen funds from DOJ

FormerFeds, a corporate defense and litigation service provider, has filed a lawsuit against the U.S. Department of Justice (DOJ) on behalf of over three and a half thousand Himalaya Exchange customers.

Digital Assets

Nubank, Circle, and Talos join forces for crypto adoption in Brazil

Nubank, the Brazilian neobank backed by Warren Buffett’s Berkshire Hathaway and Softbank Group Corp, announced new partnerships with cryptocurrency firms Circle and Talos.

Metaverse Gaming NFT

Flare onboards Ankr, Figment, Restake, and NorthStake as validators

Flare, an EVM smart contract platform known for its focus on blockchain data utility, has announced a major step in its development. The platform has onboarded leading infrastructure providers, including Ankr, Figment, Restake, and NorthStake.

Digital Assets

Sui Joins DeFi Leaders, Topping $100M in Bridged USDC

Sui, the groundbreaking Layer 1 blockchain created by the technology experts who led Meta’s Diem blockchain initiative and created the Move smart contract language, continues its explosive ascent in decentralized finance (DeFi). This week, it surpassed $100 million in bridged USDC. 

Digital Assets

Poloniex hit by UK regulator, listed as ‘unauthorised’ exchange

The UK’s Financial Conduct Authority (FCA) has added the cryptocurrency exchange Poloniex to its warning list of non-authorized companies. Poloniex, which is based in Seychelles, has experienced four hacks in the last two months and is affiliated with entrepreneur Justin Sun.

Industry News

Exclusive Markets is Proudly ISO/IEC 27001:2013 Certified by MSECB for Unparalleled Commitment to Information Security

Exclusive Markets, a leading name in the FINTECH sector, proudly announces the attainment of ISO/IEC 27001:2013 Certification by the MSECB. This esteemed certification highlights Exclusive Markets’ persistent commitment to fortifying information security within its cutting-edge trading technology. 

Digital Assets

SEC is discussing ‘technical details’ of Bitcoin EFTs ahead of approval

Discussions between the U.S. Securities and Exchange Commission (SEC) and asset managers seeking to list Bitcoin exchange-traded funds (ETFs) have reportedly advanced to key technical details.

Digital Assets

Versatus Labs Reaches $50 Million Valuation Following $2.3 Million Seed Funding Round

Versatus Labs, a peer-to-peer web services protocol aiming to help Web2 developers transition to Web3, has completed a $2.3 million funding round at a $50 million valuation led by key investors in the Web3 space including NGC Ventures and Republic Crypto. The latest funding round aims to help the company develop the ‘world’s first stateless roll-up’, Versatus LASR. This follows Versatus Labs’ recent pivot from Layer 1 solutions to Ethereum scaling solutions. 

Digital Assets

Binance ex-chief’s sentencing looms as court accepts his guilty plea

A U.S. district judge has accepted a guilty plea from former Binance CEO Changpeng Zhao (CZ) on charges related to anti-money laundering violations. The plea was accepted by Judge Richard Jones in the U.S. District Court for the Western District of Washington in Seattle.