The US Department of Justice (DOJ) is heightening its investigation into $UBS Group (UBS.US)$ and Credit Suisse Group for alleged failures in compliance, which may have allowed Russian clients to circumvent sanctions.
The DOJ's inquiry has transformed from a series of subpoenas earlier in the year to a full-fledged investigation, with a primary focus on Credit Suisse Group, as per sources cited by Bloomberg. The department is also reportedly investigating potential compliance issues with UBS.
UBS, which assumed control of Credit Suisse in June, has received notification regarding the alleged involvement of its recently acquired subsidiary in sanctions violations.
Bloomberg stated that this investigation encompasses the sanctions imposed following the invasion of Ukraine by Russia in 2022 and previous sanctions related its annexation of Crimea in 2014.
The DOJ is leveraging UBS's takeover of Credit Suisse as a chance to expedite its investigation. The department has directly solicited information from UBS, circumventing the typically slower diplomatic routes.