American government authorities, including the Office of Foreign Assets Control (OFAC), have begun checking the accounts of Russian clients at the largest Swiss bank, UBS, who moved there after UBS bought Credit Suisse. UBS CEO Sergio Ermotti, who is now leading the post-merger reorganization, said the bank was conducting a detailed review of accounts, weeding out unwanted clients and assets, including those linked to Russian operations.
After acquiring troubled Credit Suisse, UBS inherited a significant number of clients, including Russian depositors who are now under scrutiny for compliance with sanctions. Based on preliminary data, in 2022 approximately 4% of funds managed by Credit Suisse belonged to Russian clients, equivalent to about $35 billion.
In response to OFAC's requests, UBS has already begun blocking suspicious accounts in an attempt to avoid fines. Cooperation with the US is an important step for the bank to avoid the threat of financial sanctions that may be imposed if it is found that the bank has serviced sanctioned assets.
Meanwhile, UBS continues to make structural changes following its merger with Credit Suisse, which collapsed in March 2023 amid a series of scandals, including money laundering.
