#1
#1 out of 3
business1d ago
Swiss prosecutors file charges against Credit Suisse and UBS over ‘tuna bonds’ scandal
Theguardian.com and 1 more
- Swiss prosecutors charge Credit Suisse, now part of UBS, over Mozambique money-laundering concerns, indicting a former official and accusing the banks of failing to curb illicit flows.
- The Mozambique loan scheme, totaling over $2 billion from 2013 to 2016, is central to the charges, with prosecutors alleging misconduct tied to a state tuna project and other government-backed initiatives.
- UBS, which absorbed Credit Suisse in 2023, faces criminal liability in the Mozambican case and has rejected the attorney general’s conclusions while vowing to defend its position.
- The case highlights alleged weaknesses in risk management and compliance at the banks in 2016, with prosecutors saying insufficient measures enabled money laundering to proceed.
- The Mozambique Debt Scandal originated from 2013-2016 loans, later scrutinized as part of a broader set of regulatory and reputational challenges for Credit Suisse and its successor UBS.
- The case contributed to a series of governance and regulatory consequences for Credit Suisse and UBS, including legacy scrutiny and subsequent regulatory settlements.
- Aid suspension and economic fallout in Mozambique followed the scandal, with donors and the IMF pausing assistance amid concerns about governance.
- The Mozambique case saw a separate October 2023 settlement in London on the overarching dispute, just ahead of trial proceedings.
- The indictment centers on a 2013 transfer of nearly $7.9 million from Mozambique to Credit Suisse in Switzerland, with funds later moving through UAE accounts.
- The charges, disclosures, and ongoing investigations mark a new legal chapter as Credit Suisse/UBS navigate legacy scandals and regulatory scrutiny post-merger.
Vote 1
