Swiss banking major Credit Suisse is expected to shell out $536 million as fine to the American authorities, for its dealings with parties including Iran, that are subject to US economic sanctions.
Credit Suisse is in advanced discussions with the concerned US agencies to settle the investigations into US dollar payments during 2002 to April 2007 involving such parties.
"As part of the settlement, Credit Suisse is likely to pay a total of $536 million combined," the banking major said in a statement late Tuesday.
Going by the law, firms coming under American regulations are barred from having business with parties which have US economic sanctions on them. Credit Suisse has significant operations in the US.
The bank had dealings with such parties including Iran.
Stressing that the bank is committed to highest standards of integrity and regulatory compliance, Credit Suisse said it had "terminated its business with all (Office of Foreign Assets Control) OFAC-sanctioned parties in 2006, including closing its representative office in Tehran".
Credit Suisse said it had earlier disclosed the probe by the US. Related to settlement, the bank expects to have a charge of 360 million Swiss francs in the current quarter.
Credit Suisse would be the second Swiss banking major to pay a huge fine to the US authorities in 2009. Earlier this year, rival UBS paid $780 million to avoid criminal charges in a case related to tax evasion.
"While Credit Suisse had recorded provisions for this matter through the end of the third quarter of 2009, it expects to record an additional pre-tax charge of 445 million Swiss francs in the current quarter, estimated to be about 360 million Swiss francs after tax," the statement noted.
Without disclosing details, Credit Suisse said in December 2005, it decided to "exit the business in question".
Subsequently, the bank also undertook an extensive independent investigation into the Zurich-based payment activity and other practices, working closely with regulators and US authorities, the statement added.
Apart from concluding its internal review into these issues, Credit Suisse has also discussed the same with various government authorities, including the bank's main regulator -- Swiss Financial Market Supervisory Authority.
