People passing by a UBS signage in Zurich — AFP
ZURICH: UBS says it is not aware of a probe by the US Department of Justice into alleged sanctions-related compliance failures, after a media report earlier last week.
“The recent reporting on an alleged probe by the US Department of Justice into sanctions-related compliance failures at Credit Suisse and UBS is inaccurate. We’re not aware of such a probe,” UBS said in a statement.
“UBS and Credit Suisse have significantly and proactively reduced their Russia-related exposure,” it added.
A UBS spokesperson declined further comment last Saturday.
Trading in UBS shares was temporarily halted last Wednesday after they fell nearly 8% following a Bloomberg News report which said that a full-scale US Department of Justice investigation was underway into alleged compliance failures that helped Russian clients evade sanctions.
The Department of Justice declined to comment and UBS had also declined to comment to Reuters last Wednesday when asked for a response to the report.
Bloomberg News could not immediately be reached for comment on the UBS statement last Saturday.
Citing unnamed people familiar with the matter, Bloomberg’s report said that the DoJ had spoken to US-based lawyers for UBS about Credit Suisse’s alleged exposure to sanctions violations since UBS acquired its smaller rival in June.
The DoJ is also looking into possible compliance failures at UBS, one of the people cited by Bloomberg said. The people said the investigation was still in its early stages and might not result in charges or a settlement. — Reuters
