Swiss regulator clears UBS takeover of Credit Suisse; HSBC accused of money laundering over Lebanon funds
- Switzerland's financial regulator ruled out any antitrust action against UBS following its takeover of Credit Suisse.
- However, HSBC's Swiss bank is facing accusations of breaching money laundering rules related to funds sent between Lebanon and Switzerland over a 13-year period.
- The allegations point to a potential regulatory investigation into HSBC's Swiss private banking arm.
Switzerland's financial regulator, FINMA, has ruled that the UBS takeover of Credit Suisse does not raise competition concerns, despite recommendations from the antitrust watchdog. The merger will not eliminate effective competition in any market segment, according to FINMA. The decision follows a report by competition authority COMCO, which was sent to FINMA in September. UBS will continue its integration of Credit Suisse. The historic takeover has stirred fears about the Swiss economy and narrowed financing options for high-cost, export-oriented companies. UBS CEO Sergio Ermotti criticized calls for tougher regulations, calling critics "fear" and "populist." In a separate incident, HSBC's Swiss private bank breached money laundering rules, failing to conduct proper checks on funds totaling £236 million sent between Lebanon and Switzerland over 13 years. Finma found that HSBC seriously violated money laundering rules and banned the bank from taking on new high-risk customers until a full review is completed. HSBC plans to appeal the decision. Finma has ordered the bank to review all high-risk business relationships and relationships with politically exposed persons, with on-site monitoring by an audit agent.