The OFAC is tasked with ensuring that no one is doing business with adversaries to the United States, and they’re currently investigating UBS after they purchased Credit Suisse.
Credit Suisse has a questionable and rough past. According to reports, the company completely imploded back in March of 2023. This collapse wasn’t a surprise, either, because the company had been accused for years of laundering drug money and spying.
UBS, however, believes it can rehabilitate the defunct lender and help clients who are still attached to the company. There’s a huge question, though, whether UBS will wind up with risky clients as a result of the acquisition. The OFAC will be investigating the whole situation to ensure that all the company’s dealings are within the scope of the law. Doing business with Russian adversaries will result in penalties and consequences.
Right now, the CEO of UBS is going through all the books of Credit Suisse. Questionable clients and assets are being offloaded, including any accounts that have ties to Russia that could impact the business. The investigation is still underway, but reports stemming back to at least 2022 show that at least 4% of Credit Suisse’s managed assets were specifically tied to Russian clients. Back then, that equated to around $35 billion. Today, it remains unclear what percentage and amount of money is connected to Russia. UBS is also carefully reviewing accounts to ensure they do not wind up with any clients connected to Iran or other sanctioned countries and adversaries.
One of the biggest issues auditors are facing is that Switzerland-based accounts are under no legal obligation to reveal the real ownership of their assets. For that reason, it becomes extremely difficult for a company like UBS to determine if the owner could potentially be subject to sanctions.
UBS will continue to do its due diligence in sifting through transactions, removing suspicious accounts, and doing business in an upright and legal manner. UBS representatives have confirmed that the constantly changing sanctions from the Russia-Ukraine war require constant attention, but it’s a necessary part of doing business.
Are You Remaining Compliant With Evolving Sanctions?
Do you believe that UBS’ review is excessive? If so, then you might need to review your own company’s business dealings! This type of diligence isn’t just important for the safety of the country, but it’s also a legal requirement. All businesses and individuals in America have a legal obligation to ensure that they are not doing business with a sanctioned individual, country, business, or group.
If you’re not sure, then you can always check the latest sanctions here. If you conduct a lot of foreign business, then it might be easier to consult with an international attorney who can help you audit your transactions. A quality lawyer can help your business remain compliant with all the latest OFAC sanctions and avoid any financial or criminal consequences.
Here at Bukh Global, our team of attorneys can help you understand your legal obligations and rights. Contact us now to learn more about how we can help.