The US Committee on the Budget conducted an examination into stories concerning Credit Suisse’s management of Nazi clients and accounts linked to the Nazi regime.
The US Committee determined that the embattled Swiss bank had put in place an overly rigid and restrictive framework for its multi-year internal review of the situation.
Credit Suisse’s Involvement with Nazi Germany
Between 1941 and 1945, during World War II which began in 1939, Nazi Germany and its allies conducted a devastating campaign of genocide, killing an estimated six million Jews in what is known as the Holocaust. This tragedy resulted in the loss of two-thirds of Europe’s Jewish population.
An investigation conducted by the Committee revealed that Credit Suisse, which was established in 1856, had a minimum of 99 accounts that were not made public and were held by high-ranking Nazi officials in Germany or by members of Nazi-associated entities.
Also, reports suggested that the Swiss lender opened approximately 70 accounts in Argentina, connected to Nazis, and at least fourteen of those were active up until 2020.
In March 2020, the Simon Wiesenthal Centre, a Jewish human rights organization, notified Credit Suisse that it had credible evidence of potential Nazi-linked accounts that had not been disclosed in prior Holocaust-related investigations.
In response to the allegations, Credit Suisse agreed to investigate, appointing AlixPartners, a forensic research firm, to review the claims and appointing Neil Barofsky of Jenner & Block LLP as an independent ombudsman in June 2021. However, the US Committee obtained two reports through subpoena which revealed that Credit Suisse had “inexplicably terminated” Barofsky’s appointment while the review was still in progress, and refused to pursue new avenues of investigation that had emerged during the review.
The US Senator, Chuck Grassley, explained:
[Credit Suisse’s] removal of an Independent Ombudsperson and insistence on redacting portions of his report as well as its initial refusal to pursue leads on accounts that may be associated with Nazi ratlines is no way to conduct a thorough and complete investigation.
The Committee pointed out that the reports were incomplete and hindered by certain limitations. Even so, they discovered previously unknown accounts connected to the Nazis and raised fresh inquiries about the possibility that the bank might have aided Nazi criminals to avoid prosecution after World War II via pathways referred to as ‘Ratlines’.
No Signs of Wrongdoing Detected by Probe
The Committee observed that Credit Suisse has contested the disclosure of Barofsky’s report, despite a subpoena. The bank has taken steps that have prompted Barofsky to refuse to publish the complete version of the report without certain omissions.
Nevertheless, Credit Suisse has made a promise to expand the scope of its earlier probe into the matter. In spite of this, Reuters reported that the Swiss institution protected its preliminary review, saying it had not found any proof to back up the main claims made by SWC.
Furthermore, the US Senate Finance Committee’s two-year investigation, which reached its conclusion last month, concluded that Credit Suisse had infringed on a 2014 agreement made with the US Department of Justice by aiding high-net-worth American customers to dodge taxes.
The Swiss bank helped the clients conceal over $700 million in undeclared accounts, as per the Committee’s findings.
The new details have come to light even as the Swiss banking giant struggles from the current banking disaster. But were saved by a quick takeover deal from rival UBS. Nevertheless, the transaction, which is planned to be finalized by the end of 2023, is being investigated by Swiss prosecutors.
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