5.1bn Swiss francs (£4.02bn) that are linked to Russia has been frozen by Credit Suisse, a banking giant, following the sanctions that were imposed by the United States of America.
The bank has its headquarters in Zurich. In its results for the second quarter, the bank has revealed that it had identified affected transactions and client relationships in order to ensure compliance.
It said that higher assets that are under management were partly offset “by structural effects primarily reflecting the impact of the US sanctions involving Russia,” It confirmed the amount on Wednesday.
Credit Suisse added that the sanctions compliance group is monitoring the developments closely.
A spokesperson from the bank stated: “Credit Suisse works with international regulators wherever it does business to ensure compliance with sanctions, including compliance with sanctions involving Russia.” 370 billion francs in private banking assets are being managed by the international wealth management unit.
He added: “Unless there are specific restrictions in place, we continue serving Russian clients by applying enhanced due diligence procedures,” the bank’s financial report continued.
Earlier this year, Credit Suisse and UBS Group AG, its Zurich-based rival, suspended trading in firms that are owned by Victor Vekselberg, a Russian oligarch. Last April, Vekselberg and Renova Group, his investment company, appeared on a list that included oligarchs, companies and senior government officials who are subject to the sanctions that were released by the U.S. Treasury. The United States announced the sanctions in order to penalise the nation for its annexation of Crimes and its involvement in the war in Syria.
The bank cautioned that geopolitical developments and the intensifying tensions that are surrounding global trade, and the monetary policy changes by central banks, will potentially trigger periods of heightened uncertainty throughout the rest of the current year.
In a statement, it disclosed: “That uncertainty has, over time, the potential to negatively affect confidence, which in turn could impact a wide range of asset classes and activities, relevant for our more market-dependent activities.”