Credit Suisse Settles US Probe, Pay $536M - TheStreet

ZURICH, Switzerland (


) --

Credit Suisse

(CS) - Get Report

said it is likely to pay $536 million to settle a U.S. government investigation that the bank had dealings with countries under U.S. economic sanctions.

In a statement, Credit Suisse, the Swiss bank, said it was in "advanced settlement discussions" with the Manhattan District Attorney's Office, the Justice Department, the

Federal Reserve

and the Office of Foreign Assets Control.

Credit Suisse said the investigation centers on payments it made from 2002 to April 2007 "involving parties that are subject to U.S. economic sanctions. "

Credit Suisse said it expects to record a fourth-quarter pretax charge related to the settlement of 445 million Swiss francs ($427.4 million).

The Manhattan District Attorney's office confirmed Tuesday it was negotiating with the bank, but a spokeswoman said there was no final agreement, the

Associated Press

reports. The DA's office has scheduled a news conference for Wednesday.

Credit Suisse said it had previously disclosed the U.S. investigation and that it was conducting an internal review of the matter. The bank said it decided to exit the business in question in December 2005 and began an independent probe into Zurich-based payment activity. Credit Suisse said its internal review has now been concluded.

Credit Suisse said it terminated its business with all parties sanctioned by the Office of Foreign Assets Control in 2006, and closed its representative office in Tehran, Iran.

The U.S. has placed economic sanctions on Iran, North Korea and Cuba.

-- Reported by Joseph Woelfel in New York.

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