(CTN News) – Credit Suisse has been fined S$3.9 million ($3 million) by Singaporean authorities after an investigation found that the bank’s relationship managers failed to prevent or identify misconduct.
The investigation revealed that the bankers provided clients with inaccurate or incomplete post-trade disclosures, resulting in customers being charged higher spreads than agreed upon rates for 39 over-the-counter bond transactions.
The Monetary Authority of Singapore stated that Credit Suisse has paid the penalty and compensated the affected clients separately.
The MAS also noted that the bank has strengthened its internal controls since being acquired by Swiss rival UBS Group AG. The MAS’s action against Credit Suisse is part of its broader review of pricing and disclosure practices in the private banking industry.
The regulator found that the bank had not implemented sufficient controls, such as post-trade monitoring, to prevent or detect the misconduct by its bankers. Credit Suisse expressed its satisfaction in resolving the matter with the MAS through a series of independent reviews.
The bank stated that it has already reimbursed the affected clients, who make up only a small percentage of the bank’s order processing system.
In order to prevent any future occurrences, the bank has implemented measures to improve its policies, procedures, and controls.
UBS is currently facing the penalty in Singapore, adding to its challenges as it works on integrating employees from its former rival worldwide. This incident has raised concerns about the acquired firm’s internal controls.
According to Bloomberg News, earlier this year, the MAS had planned to conduct an on-site inspection of Credit Suisse and other banks after one of its customers was charged with money laundering in Singapore.
Additionally, a few years ago, Credit Suisse was fined S$700,000 by the MAS for its involvement in the 1MDB scandal, which was Malaysia’s largest corruption case at the time. This penalty was the smallest imposed by the regulator on banks in Singapore.