By Stephanie Nebehay

BELLINZONA, Switzerland (Reuters ) – A former Credit Suisse manager claimed that millions of euro were being paid from accounts linked to a Bulgarian wrestler who was at the center of an international drug investigation. This occurred despite alerting the bank’s legal compliance unit.

Credit Suisse (SIX.) One of the bank’s former wealth managers faces charges that they allowed a suspected cocaine trafficking gang to launder millions in euros between 2004 and 2008. This is the first criminal case against a large Swiss bank.

The second-largest bank in Switzerland has denied all allegations. It said that there were no wrongdoings by the former employee. This case has drawn intense attention in Switzerland, which is seen as an opportunity for the prosecution to take a tougher line against the influential lenders.

According to state prosecutors, the ex-relationship manager of Credit Suisse who quit in 2010 helped hide the criminal origins for clients’ money through transactions totalling more than 146,000,000 Swiss Francs, which included some 43 million Swiss Francs cash.

Credit Suisse denies the illicit origin of the money. A source close to its thinking said that Credit Suisse believes Evelin Banev (a former Bulgarian wrestler) and his entourage operated legal businesses in the construction, leasing, and hotel industries.

According to Swiss privacy laws, the identity of the former wealth manager cannot be disclosed. She told the Federal Criminal Court last week that payments made from Bulgarian accounts were kept confidential by the bank management after one of the suspected gang members was killed.

One of the former supervisors of the bank’s 150+ strong eastern European section told Monday’s court that the awareness of money laundering has improved since then.

The former Credit Suisse banker stated that money laundering was a relatively recent crime at the time. He added: “It wasn’t something we talked about every day, but it was very important.”

A late August 2007 email showing that outflows of 9.3 million euro ($10.5m) were already occurring was sent to him by the banker. Another 4 million Swiss Francs had been set to be released months later after a criminal investigation into Banev was launched in Bulgaria. Credit Suisse was also informed.

Banev doesn’t face any charges in Switzerland. However, he was convicted of drug trafficking in Italy and money laundering in Bulgaria. In September, he was detained in Ukraine after being sought by countries like Bulgaria and Romania.

His attorney in Sofia stated that Banev had denied involvement with money laundering via Credit Suisse.

His associates, including two others are being charged in the Swiss case.

RISK APPETITE

Credit Suisse was indicted for considering Bulgaria a country of high risk at that time according to the indictment. According to a source, Credit Suisse plans to bring attention to the calls it made to Swiss prosecutors by its compliance division after Banev was arrested temporarily in Bulgaria in April 2007.

The former Credit Suisse banker stated Monday that his memories of the events were now fading, and that oversight was being done by others at the Swiss bank.

“I can’t recall whether I was aware about it. It’s very possible that I was,” the ex-manager said. The manager added that it would surprise him if the bank didn’t notify Swiss anti money laundering authorities and block the accounts.

He said, “I can assure you that bank members who are part of criminal organizations would not be within their risk appetite.” According to him, “The fact that wealth was not derived from criminal backgrounds was important in 2007.”

Prosecutors presented the media reports, one of which was headlined “Bulgarian Businessman Murder linked to Spanish Cocaine”. The banker refuted having seen the reports.

He spoke of the bank’s culture and performance standards.

My performance would consider whether revenue was growing or stagnant. One way to increase revenues is by bringing in more customers. He stated that no bank wants to lose customers.

($1 = 0.8840 euros)