Regulators probe CS Group’s Argentina connection

CS Group CEO, Lukas Mühlemann, faces questions on the bank's activities in South America Keystone Archive

Switzerland's Credit Suisse Group is to provide information on its South American activities, following accusations against a partner bank in Argentina.

The Federal Banking Commission has asked the CS Group, Switzerland’s second largest bank, to submit a report on the bank’s activities in South America and its involvement in the alleged unlawful dealings of its partner bank, Banco General de Negocios (BGN).

Tanja Kocher, spokeswoman for the Federal Banking Commission, told the Swiss newspaper “SonntagsZeitung”: “We have asked the CS Group to submit a comprehensive report on their dealings in South America.”

This move follows the arrest of Carlos Rohm, vice president of BGN, on January 23, who is accused of involvement in capital flight and money laundering.

Rohm’s brother Jose, who is also said to be involved in the bank’s alleged unlawful dealings, is reported to be in hiding.

The CS Group owns a 23 per cent stake in BGN and its chief executive, Lukas Mühlemann, is a member of the board of directors of the Argentinian bank.

Kocher said the Federal Banking Commission was in close contact with the Swiss banking group and confirmed that the probe was not a preliminary investigation but was supposed to clarify whether the CS Groups had violated any banking regulations.

The report will provide information on CS Group’s partner banks in Argentina, Uruguay and Panama as well as their activities there. “However, we are not responsible for the South American banks as they have their own supervisory body,” Kocher continued.

“This is all about reputation and we want to make sure that Switzerland has not violated any banking regulations,” she said.

swissinfo with agencies