June 6, 2018 / 6:22 AM / 2 months ago

Credit Suisse to pay $47 million to settle hiring corruption probe

ZURICH (Reuters) - Credit Suisse (CSGN.S) will pay a penalty of about $47 million (35.06 million pounds) to resolve a U.S. Department of Justice corruption probe into its hiring practices in the Asia Pacific region between 2007 and 2013, the Swiss bank said in a statement on Wednesday.

The logo of Swiss bank Credit Suisse is seen at a branch in Winterthur, Switzerland November 2, 2017. REUTERS/Arnd Wiegmann

The bank said no criminal charges were brought, that it had set aside money in previous periods to cover the penalty and that it did not expect an impact on second-quarter results.

The U.S. investigation looked into whether Credit Suisse hired referrals from government agencies in Asia in exchange for business.

Chief Executive Tidjane Thiam has been seeking to turn around the bank’s fortunes following big losses as well as exit an era when ethical lapses cost it billions in penalties or settlements.

“Since 2013 Credit Suisse has implemented numerous enhancements to its compliance and controls function and it remains committed to upholding the highest standards of integrity and fair business practices in every jurisdiction in which it operates,” the Zurich-based bank said in a statement.

Other banks have made payments to resolve similar U.S. Foreign Corrupt Practices Act investigations, including JPMorgan Chase & Co (JPM.N) in 2016 when it agreed to pay U.S. authorities $264 million to resolve allegations it hired the relatives of Chinese officials or powerful executives, so-called “princelings”, to win banking deals.

HSBC (HSBA.L) has also said it has been investigated by the U.S. Securities and Exchange Commission in relation to hiring practices of candidates with ties to Asian government officials.

Reporting by John Miller; editing by Jason Neely

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