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BUSINESS

Switzerland’s Credit Suisse settles with star banker over spying scandal

Credit Suisse reached an out-of-court settlement with former star wealth manager Iqbal Khan over a spying scandal that cost the scalp of the then-chief executive, Switzerland's second-biggest bank said Sunday.

A sign of Swiss banking Credit Suisse is seen on a branch in Lausanne on April 6, 2021. (Photo by FABRICE COFFRINI / AFP)
A sign of Swiss banking Credit Suisse is seen on a branch in Lausanne on April 6, 2021. (Photo by FABRICE COFFRINI / AFP)

CEO Tidjane Thiam was forced to resign in February 2020 after admitting the bank had hired investigators to follow Khan, head of international wealth management, because he had opted to move to arch-rival, UBS.

As well as sending shockwaves through banking circles, the case sparked a criminal probe in Switzerland.

“All parties involved have agreed to end the case,” Credit Suisse spokeswoman Simone Meier told NZZ am Sonntag, which revealed the agreement.

Meier declined to comment further when contacted by AFP.

The public prosecutor of the canton of Zurich has also ended his investigation, as the complaints have been withdrawn, NZZ am Sonntag reported.

Thiam’s resignation followed a torrid six-month scandal that began with revelations in the Swiss press that Khan had been shadowed by agents from a private detective company hired after he joined UBS. 

At one point, Khan physically confronted the people following him.

In October, chief operating officer Pierre-Olivier Bouee resigned, acknowledging at the end of an internal investigation that he “alone” had ordered the tailing without informing his superiors.

He had wanted to ensure that Khan was not trying to poach other employees, according to the internal investigation.

The case was reopened in December 2019 when the bank admitted to a second case of espionage, this time involving the former head of human resources, and then in February after media reports that the surveillance had also targeted the environmental organisation Greenpeace.

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CRIME

Swiss woman indicted over ‘jihadist knife attack’ in department store

Swiss prosecutors said Wednesday they had indicted a woman for attempted murder on behalf of the Islamic State (IS) group over a brutal knife attack in November 2020.

Swiss woman indicted over 'jihadist knife attack' in department store

The 29-year-old unnamed woman allegedly attacked two women in a department store in the southern city of Lugano.

She has been charged with attempted murder and violating laws against association with Al-Qaeda, IS and related groups, according to the indictment.

She was also charged with unlawful prostitution.

EXPLAINED: Does Switzerland face a threat from terrorism?

The attorney general’s office said the indictment related to a “jihadist knife attack” and the alleged assailant, a Swiss citizen, “intended to kill her victims and to commit a terrorist act on behalf of IS.”

“The suspect acted wilfully and with particular ruthlessness. She brutally attacked her randomly-selected victims with a knife, with the aim of killing them and thereby spreading terror throughout the population on behalf of the ‘Islamic State’,” it said.

One of the two victims sustained serious neck injuries while the second victim, with help from others at the scene, managed to overpower her attacker and hold her until police arrived.

The attacker was arrested and detained. Police quickly discovered she had been linked to a 2017 jihadism investigation.

The woman had formed a relationship on social media with a jihadist fighter in Syria and attempted to travel to the war-torn country to meet him, police alleged at the time.

She was stopped by Turkish authorities at the Syrian border and sent back to Switzerland, they said, adding that the woman had suffered from mental health problems and been admitted to a psychiatric clinic.

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