Swiss Bank charged over Mozambique tuna bond case

Switzerland’s federal prosecutor has filed charges against the failed bank Credit Suisse and its new owner, UBS, over the long-running ‘tuna bonds’ loan scandal that crashed Mozambique’s economy nearly a decade ago, The Guardian reports. The Swiss Attorney-General said it had brought money laundering charges against an unnamed employee of Credit Suisse, but was also taking action against the lender and its rival-turned-owner, UBS. The Attorney-General’s office accused the banks of ‘organisational deficiencies’ that ultimately failed to prevent wrongdoing and meant suspicious transactions were not reported until 2019, after the US Department of Justice announced it was launching its own criminal proceedings. The prosecutor added: ‘In 2016, in particular, considerable defects existed in the companies’ risk management, compliance and internal directives systems in connection with combating money laundering.’ UBS said it firmly rejects the Office of the Attorney-General’s conclusions ‘and will vigorously defend our position.’ The tuna bonds scandal arose from $2bn worth of loans that Credit Suisse arranged for the Republic of Mozambique between 2013 and 2016. The loans were said to be going to government-sponsored investment schemes, including maritime security projects and a state tuna fishery, located in the capital, Maputo. But a portion of the funds went unaccounted for, with one of Mozambique’s contractors later found to have secretly arranged ‘significant kickbacks’ worth at least $137m, including $50m for bankers at Credit Suisse, meant to secure more favourable deals on the loans, according to the Financial Conduct Authority.

Full report in The Guardian