Scandal Resurfaces: Credit Suisse and Mozambique's Tuna Bonds

Swiss prosecutors have accused UBS-owned Credit Suisse of failing to prevent money laundering in connection with controversial loans to Mozambique's tuna fishing fleet. This case, linked to an earlier scandal, involves alleged bribes and reflects organizational weaknesses at the bank. UBS denies the charges, promising a robust defense.

Swiss federal prosecutors have alleged that UBS-owned Credit Suisse was negligent in preventing money laundering related to loans provided to Mozambique's tuna fishing fleet, igniting a financial crisis in the country a decade ago. According to the Attorney General's Office, Credit Suisse and its successor UBS are liable due to organizational shortcomings.

In connection with the case, a former Credit Suisse employee has been charged with money laundering, though charges against another former staffer were dropped. UBS has dismissed the accusations, which pertain to incidents surfacing in 2016, well before it acquired Credit Suisse in 2023. UBS has vowed to vigorously defend its stance, asserting its disagreement with the prosecutor's findings.

The scandal, involving loans exceeding $2 billion to Mozambique's state companies—dubbed the tuna bonds scandal—led to severe repercussions for Credit Suisse. Allegations include the transfer of $7.9 million, linked to bribes, from Mozambique's Finance Ministry to bank accounts in Switzerland and subsequent transactions in the UAE. Credit Suisse was fined over its handling of this affair, highlighting broader issues in compliance and governance.

(With inputs from agencies.)