By Oliver Hirt, John O’Donnell, Stefania Spezzati and Dave Graham
ZURICH/FRANKFURT/LONDON (Reuters) – The United States is conducting an investigation into Russian clients that UBS took on when it bought Credit Suisse, three people familiar with the matter said, increasing scrutiny on one of the world’s largest wealth managers. .
The US sanctions enforcement agency, OFAC, has written to the bank as part of this investigation, two people familiar with the matter told Reuters. A U.S. official, who asked not to be identified, said the Swiss bank and the executor have held talks.
OFAC, or the Office of Foreign Assets Control, the world’s most powerful sanctions agency, wrote to UBS in recent weeks, one of the people said.
Spokespeople for UBS and OFAC declined to comment.
The review concerns Russian clients of Credit Suisse that UBS now oversees after bailing out the lender, two of the people said. Credit Suisse, UBS’s smaller Swiss peer, imploded in March 2023 after years of scandals ranging from espionage to drug money laundering.
UBS is trying to contain any potential fallout from the OFAC inquiries by cordoning off suspicious money and dismantling accounts to avoid the threat of a fine, one of those people said.
The United States uses sanctions as a foreign policy tool, imposing restrictions to limit the activities of nations such as Russia and Iran.
Handling Russian money has become increasingly risky after the United States and its Western allies implemented an unprecedented web of sanctions in response to Moscow’s invasion of Ukraine.
While the US official praised UBS for its cooperation, one of the other sources said it had become clear that if the problem was not resolved it could be punished. Regulators in Switzerland have been examining how UBS is handling Credit Suisse clients and fighting the bank’s money. money laundering policies because they fear the Swiss bank could end up with risky clients, Reuters reported.