Sunday, 14, July, 2024

UBS has imposed tight restrictions on Credit Suisse bankers including a ban on new clients from high-risk countries and on complex financial products after completing the takeover of its ailing rival on Monday. UBS executives have drawn up a list of nearly two dozen “red lines” that prohibit Credit Suisse staff from a range of activities from the first day the two banks are combined, according to people with knowledge of the measures. Prohibited activities include taking on clients from countries such as Libya, Russia, Sudan and Venezuela and launching new products without approval from UBS managers.

To limit the risk of money laundering, bribery and corruption, Credit Suisse bankers are also barred from bringing on new clients from a range of high-risk countries. These include Afghanistan, Albania, Belarus, Burkina Faso, Democratic Republic of Congo, El Salvador, Eritrea, Ethiopia, Guinea, Haiti, Iraq, Kosovo, Kyrgyzstan, Libya, Moldova, Myanmar, Nicaragua, Palestine, Russia, South Sudan, Sri Lanka, Sudan, Tajikistan, Turkmenistan, Uzbekistan, Venezuela, Yemen and Zimbabwe.

Credit Suisse staff were sent a company-wide memo on Thursday, telling them to expect new “red lines” on the day the deal closed, though details of the rules were not included. UBS and Credit Suisse declined to comment on the rules. Separately, Swiss parliamentarians on Thursday voted to empower a special parliamentary commission of inquiry into the downfall of Credit Suisse.

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