Swiss Prosecutor Appeals Credit Suisse Acquittal in Bulgarian Drug Money Laundering Case

The Swiss federal prosecutor has reignited a high-profile legal battle involving Credit Suisse—now part of UBS—by appealing a court decision that had acquitted the collapsed bank in a long-running money laundering case tied to a Bulgarian cocaine trafficking ring. The appeal, lodged with the Swiss Supreme Court, brings the case back into the legal spotlight and once again places scrutiny on the banking giant’s past compliance failures.

Initially, Credit Suisse had been found guilty of failing to adequately prevent the laundering of criminal proceeds between 2004 and 2008. The case, seen as a landmark in Swiss legal history for the potential prosecution of financial institutions, alleged that the bank had not taken sufficient measures to stop the flow of illicit funds connected to a Bulgarian drug syndicate. However, the Federal Criminal Court overturned that ruling in November, acquitting the bank of all charges.

The federal attorney general’s office, not content with the reversal, formally requested in January that the acquittal be nullified. Then, in March, the office submitted a formal appeal to the Swiss Supreme Court, a spokesperson confirmed on Friday. The prosecutor declined to provide further details on the timeline for the case moving forward.

UBS, which absorbed Credit Suisse in the wake of its collapse, acknowledged the legal development in its first-quarter financial report. When contacted for comment by Reuters, the bank pointed to a litigation note included in that report. The note specifically refers to the federal prosecutor’s appeal and also confirms that UBS has filed its own appeal in the matter.

According to the note, UBS’s legal argument focuses on the question of successor liability: “whether a successor entity by merger can be criminally liable for acts of its predecessor.” This question will be central to the upcoming proceedings and could set a precedent for future cases involving merged or acquired institutions facing legal action for historical misconduct.

With the appeals now before Switzerland’s highest court, the final resolution of this case could have lasting implications for the prosecution of financial crime within the country’s banking sector.

By fLEXI tEAM