Raiffeisen Probes Compliance of CEO Stepic’s Offshore Accounts

Raiffeisen Bank International AG Chief Executive Officer Herbert Stepic is being probed by the company’s compliance department after press reports showed he used an offshore account to manage real estate investments.

Stepic employed UBS AG to set up the account, which was used to buy and manage properties in Singapore, the CEO told Vienna’s News magazine in an interview published today. Raiffeisen spokesman Michael Palzer confirmed the comments.

“Internal compliance has been instructed to consider this information and to determine whether it meets with relevant regulations and internal rules,” Palzer said from Vienna. “Once this analysis is complete, the competent bodies will evaluate the result and then draw the necessary conclusions.”

The probe doesn’t come as the first into Stepic’s investments. Austria’s financial regulator, the FMA, ended an investigation into the CEO’s land deals in Serbia this week after Stepic showed he had already exited the investment. In April, he returned 2 million euros ($2.6 million) to the bank after his 2012 salary swelled despite falling profit and job cuts.

The FMA has asked Stepic for more details about the offshore accounts and his investments, spokesman Klaus Grubelnik in Vienna said today via telephone.

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