ZURICH UBS on Saturday said it is "not aware" of a probe by the U.S. Department of Justice into alleged sanctions-related compliance failures, following a media report earlier this week.
"We're not aware of such a probe," UBS said in a statement. "UBS and CS have significantly and proactively reduced their Russia-related exposure."
On Wednesday Bloomberg reported that a full-scale investigation by the U.S. Department of Justice was underway into alleged compliance failures that helped Russian clients evade sanctions.
The Department of Justice declined to comment and UBS also declined to comment to Reuters on Wednesday when asked for a response to the report.
Trading in UBS shares was temporarily halted after they fell nearly 8% following the article.
Citing unnamed people familiar with the matter, Bloomberg reported that the DOJ had spoken to U.S.-based lawyers for UBS about Credit Suisse's alleged exposure to sanctions violations since UBS acquired its smaller rival in June.
The DOJ is also looking into possible compliance failures at UBS, one of the people cited by Bloomberg said. The people said the investigation was still in its early stages and might not result in charges or a settlement.
(Reporting by Noele Illien; Editing by David Holmes)
