Credit Suisse, the former Swiss bank now integrated into UBS Group AG — one of the world’s largest financial groups — has been accused by the Swiss Public Prosecutor of failing to prevent money laundering linked to the 2.7 billion dollars (170.1 billion meticais) in financing granted to Mozambique for the creation of a fishing fleet. These loans are part of the hidden debts scandal, contracted without parliamentary approval and responsible for a deep economic crisis in the country.
According to Swiss authorities, both Credit Suisse and UBS Group AG “did not take all necessary and reasonable organizational measures” in 2016 to halt money laundering operations related to these financings. The Public Prosecutor also filed charges against a former Credit Suisse employee allegedly involved in the same transactions.
In a statement released by the financial group, UBS categorically rejected the prosecutors’ conclusions. “We strongly reject the conclusions of the attorney general and will vigorously defend our position,” stated the institution, which took control of Credit Suisse after acquiring it in 2023. The accusation comes despite UBS having reached an agreement in 2023 with the Mozambican government regarding Credit Suisse’s involvement in the financing intended for coastal patrol and tuna fishing. That settlement ended a dispute that began ten years earlier, when the bank first financed the strengthening of Mozambique’s maritime surveillance.
The Mozambican State accused Credit Suisse of ignoring warning signs and indications of corruption involving some of its bankers during the closing of the transactions valued at 2.7 billion dollars. These amounts form part of the hidden debts, which worsened the country’s economic fragility and undermined the confidence of international partners. It should be recalled that, in 2021, Credit Suisse agreed to pay nearly 475 million dollars (30 billion meticais) to close several international investigations related to the case. Authorities concluded that part of the funds initially intended for the fishing fleet had been diverted, causing direct losses to the Mozambican state.
The diversion of these funds worsened the economic crisis that emerged after the revelation of the hidden debts in 2016. The uncovering of the scheme led several donors to suspend financial aid and forced Mozambique to adopt austerity measures with wide-ranging economic impacts.
The scandal involving the so-called tuna bonds became one of the largest financial cases involving African and European institutions, exposing serious failures in the internal control mechanisms of the now-defunct Credit Suisse. The new accusation by Swiss prosecutors increases pressure on the bank and on UBS Group AG, which inherited the legal responsibilities of the case.
Source: Bloomberg
