Credit Suisse Faces 8 Month Backlog On New Clients In Asia: FT

(Bloomberg) -- New clients are waiting as long as eight months to open accounts with Credit Suisse Group AG in Asia after the lender stepped up checks following a recent string of scandals, the Financial Times reported.

The lender's waiting list had ballooned to more than 600 people as of February because of more stringent source of wealth standards, the FT said, citing people with knowledge of the matter. After Credit Suisse relaxed in May checks on customers deemed to be “low risk,” the backlog eased to about 500, the newspaper added.  

So-called regular wealthy clients are still waiting between six to eight months to be approved, while those with between $10 million and $15 million to deposit and hundreds of millions in assets are waiting three to four months, the FT said. That's prompted some to turn to rivals such as JPMorgan Chase & Co., denting staff morale, according to the report. 

Credit Suisse is trying to shore up a reputation tarnished by a string of scandals, including the implosion of Archegos, collapse of partner Greensill Capital and a string of profit warnings.   

The lender told the FT that it's important that it fully meets all regulatory requirements when onboarding new accounts and is reviewing the IT and personnel needed. 

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