(Bloomberg) -- Credit Suisse Group AG and one of its former bank managers have been indicted by Swiss prosecutors over their alleged failure to prevent money laundering by a Bulgarian narcotics ring.
Credit Suisse failed to take all the organizational measures that were “reasonable and required” to prevent the cash made from the sale of cocaine that were then used to buy real estate in Switzerland and Bulgaria, according to a statement released by the Office of the Swiss Attorney General on Thursday.
Swiss prosecutors can prosecute banks criminally if they believe those institutions didn’t do enough to screen clients and their cash for obvious ties to illicit activity. Just last month, Swiss judges scolded a local unit of Societe Generale SA for not having been more careful in accepting money from convicted fraudster Allen Stanford.
Credit Suisse said in a statement that it noted with “astonishment” the decision to bring charges against the bank in an investigation that has already lasted more than 12 years. The bank said it rejects the allegations about supposed organizational deficiencies and intends to defend itself “vigorously.”
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