Credit Suisse is fined for helping a Bulgarian drug ring launder money, a court has heard.

Credit Suisse must pay fines and compensation of 21 million Swiss francs, or $22 million, for lax checks that allowed a bank employee to help a Bulgarian drug ring launder money , the Swiss Federal Criminal Court said on Monday.

The decision was the latest setback for the bank, which issued a profit warning this month and suffered from board turmoil.

Zurich-based Credit Suisse said it would appeal the decision, which stems from the actions of a bank employee in 2007 and 2008. The employee, who has not been named, helped the network of smuggling cocaine to make bank transfers “despite concrete indications concerning the criminal origins of the money”, the court said in a statement.

During court hearings in February, the Credit Suisse employee said the bank knew the money – sometimes delivered in suitcases filled with cash – came from a gang that had been linked to murders and large-scale cocaine trafficking from South America, Reuters reported.

Credit Suisse shared responsibility for money laundering because the bank’s management, legal team and compliance department failed to ensure anti-money laundering rules were followed, the court heard.

Swiss credit said on Monday that it “continuously tests its anti-money laundering framework and has strengthened it over time.”

The bank warned investors on June 8 that it was likely to report a loss for the quarter, the third in a row and a worrying sign as economic growth slows.

Credit Suisse is still recovering from billion-dollar entanglements with bankrupt UK lender Greensill Capital and collapsed hedge fund Archegos. In January, the bank’s president, António Horta-Osório, resigned, less than a year after being called in to clean up the mess. He resigned amid an investigation into whether his travels broke pandemic rules. In April, Credit Suisse announcement the departures of its chief financial officer, Asia director and legal director.

In its decision on Monday, the Swiss court fined the bank 2 million francs for the money laundering offence, confiscated 12 million francs held by the gang in the bank and ordered an additional payment of 19 million francs to cover the funds it could not recover because of “internal deficiencies” at Credit Suisse, the court said.

The bank employee, who has since left Credit Suisse, was sentenced to 20 months in prison for money laundering. A Bulgarian citizen accused of organizing the money laundering operation for the drug ring has been sentenced to 36 months in prison. A second Bulgarian citizen was sentenced to 12 months for serving as an intermediary.

All sentences will be significantly reduced if the defendants maintain good behavior, the court heard.