ZURICH • Credit Suisse has agreed to pay a US$47 million (S$63 million) penalty to the US Department of Justice (DoJ) to end a probe into whether it hired employees in Asia in exchange for government contracts and other favours.

The bank in Hong Kong reached a non-prosecution agreement with the DoJ into the probe of its recruitment practices in Asia between 2007 and 2013, said the Zurich-based bank yesterday.

The payment will have no material impact on second-quarter results as the bank has already provisioned for it, the lender said.

Credit Suisse said earlier this year that regulators, including the DoJ and Securities and Exchange Commission, were investigating whether it hired referrals from government and other state-owned entities in exchange for investment banking business and regulatory approvals, in potential violation of the US Foreign Corrupt Practices Act.

JPMorgan Chase agreed in 2016 to pay about US$264 million to settle US claims that it hired children of Chinese decision-makers to win business, in violation of anti-bribery laws. Investigators at the time described a systematic effort to curry favour with government officials and business executives.

Credit Suisse said it has implemented numerous enhancements since 2013 to its compliance and control functions and that no criminal charges have been brought in the case.

BLOOMBERG