Swiss Federal Criminal Court confirms acquittal of UBS in Bulgarian money laundering legacy case

The Federal Criminal Court has cleared UBS of money laundering charges inherited from Credit Suisse, ending a decade-long case involving a Bulgarian cocaine ring.

By: AXL Media

Published: Mar 5, 2026, 5:58 AM EST

Source: The information in this article was sourced from Keystone-SDA via SWI swissinfo.ch

The Appeals Chamber Verdict

The Appeals Chamber of the Federal Criminal Court has upheld the acquittal of UBS (formerly Credit Suisse) regarding allegations of failing to prevent money laundering by a Bulgarian criminal organization. The judges in Bellinzona ruled that the bank was not guilty of aggravated money laundering, nullifying previous convictions and a significant compensation claim that had once reached nearly $21.5 million. The court concluded that while there were deficiencies in the bank's anti-money laundering (AML) framework at the time, the prosecution failed to prove that managers willfully ignored red flags or that these deficiencies directly facilitated the laundering.

Legal Succession and Merged Liability

A critical component of the defense was the issue of successor liability. UBS, which completed its emergency takeover of Credit Suisse in 2023, had argued that criminal liability should not transfer to a legal successor after a merger. While the court focused its ruling on the lack of proven criminal intent, UBS welcomed the decision as a resolution to a "legacy issue" from an era of different leadership and different compliance standards. This ruling is seen as a major win for UBS as it continues to integrate Credit Suisse’s operations while attempting to "clean the slate" of historical legal risks.

Impact of a Key Employee's Death

The case was complicated significantly by the death of a former Credit Suisse wealth manager—identified in court as "A"—who passed away in April 2023. The court noted that because the primary individual accused of facilitating the transactions was no longer able to defend herself, it was impossible to further examine the bank's alleged violations without breaching the presumption of her innocence. Consequently, proceedings against the deceased employee were formally discontinued.