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UBS issued a statement stating that it is not aware of any probe by the U.S. Department of Justice (DOJ) into alleged sanctions-related compliance failures, countering a media report from earlier in the week.
In the statement, UBS clarified, “The recent reporting on an alleged probe by the US Department of Justice into sanctions-related compliance failures at Credit Suisse and UBS is inaccurate. We’re not aware of such a probe.” The bank also highlighted that both UBS and Credit Suisse have actively reduced their Russia-related exposure.
A UBS spokesperson provided no further comments on the matter on Saturday.
The tumultuous situation led to a temporary halt in trading of UBS shares on Wednesday, following a report that alleged a comprehensive investigation by the U.S. Department of Justice into compliance failures related to assisting Russian clients in evading sanctions.
The Department of Justice and UBS had both declined to comment on the report when initially approached by Reuters on Wednesday.
As of now, there has been no response or comment from Bloomberg News on UBS’s statement issued on Saturday.
Citing undisclosed sources, Bloomberg’s report had indicated that the DOJ had been in discussions with U.S.-based lawyers representing UBS regarding Credit Suisse’s potential involvement in sanctions violations since UBS’s acquisition of the smaller bank in June.
Furthermore, the DOJ is reportedly investigating potential compliance lapses at UBS, although one of the sources cited by Bloomberg emphasized that the investigation is still in its early phases and may not necessarily lead to charges or a settlement.
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