Swiss federal prosecutors have filed an indictment against UBS-owned Credit Suisse, accusing the bank of failing to prevent money laundering linked to the infamous Mozambique ‘Tuna Bonds’ scandal that plunged the African nation into a severe economic crisis a decade ago.

The charges, filed by Switzerland’s Office of the Attorney General (OAG), allege that Credit Suisse and its legal successor, UBS, are criminally liable due to organizational deficiencies that prevented the detection and reporting of illicit transactions. UBS, which took over the troubled Credit Suisse in 2023, has firmly rejected the allegations, stating it will “vigorously defend our position.”

The case relates to more than $2 billion in hidden loans that Credit Suisse arranged between 2013 and 2014 for three Mozambican state-owned companies, ostensibly to fund maritime security and a state-owned tuna fishing fleet. Instead, large portions of the funds were allegedly embezzled, creating a massive, undisclosed national debt that the Mozambican parliament had not approved.

The current OAG indictment focuses on a specific transaction that occurred in 2016. Approximately $7.9 million was allegedly transferred from the Mozambique Finance Ministry to accounts held by a foreign consulting company at Credit Suisse in Switzerland.

The OAG alleges the money was obtained or facilitated through the bribery of Mozambican public officials and misconduct in the public sector. Shortly after the money was credited, the account holder transferred $7 million to accounts in the United Arab Emirates.

The OAG’s primary charge against the bank centers on its failure to take “all the required and reasonable organizational measures” in 2016 to prevent the money laundering. Specifically, the indictment highlights “considerable defects” in the bank’s risk management, compliance, and internal directives systems.

A key element of the OAG’s case involves a former Credit Suisse compliance officer, who has also been charged with money laundering. Prosecutors allege that when the bank initiated enquiries into the suspicious transaction.

The compliance officer, despite having “numerous indications” of the illicit origin of the funds, recommended that management not file a report to Switzerland’s Money Laundering Reporting Office (MROS).

Instead, the compliance officer recommended that the bank merely terminate the business relationship. This action allegedly caused or permitted the remaining funds to be moved abroad and laundered.

The Swiss finance ministry had previously fined the bank’s ex-compliance chief for failing to notify anti-money laundering authorities about the transaction, a fine that is currently under appeal.

The Economic Crisis and Previous Settlements

When the full extent of the hidden $2.2 billion debt was exposed in 2016, Mozambique was plunged into a severe economic crisis. International donors, including the International Monetary Fund (IMF), temporarily halted critical financial support, triggering a sovereign debt default and a currency collapse.

Credit Suisse has already faced severe global penalties for its role in the scandal:

The current OAG indictment brings the long-running scandal back to the Swiss domestic legal system, forcing UBS—which absorbed Credit Suisse’s legacy legal risks—to fight a high-stakes criminal charge related to events that predate its acquisition.

Summary of OAG Charges in Credit Suisse Mozambique Scandal

1. Charge Against the Banking Entity (Credit Suisse / UBS)
   This is a corporate criminal charge targeting the bank itself for systemic failures.

• Accused Entities: Credit Suisse Group SA and its successor companies, UBS SA and UBS Group SA.
• Charge: Failure to prevent the offence due to organizational deficiencies (under Article 102 in conjunction with Article 305bis of the Swiss Criminal Code).
• Allegation Details: The OAG alleges the bank did not take “all the required and reasonable organizational measures” in the relevant period, specifically in 2016, to prevent the money laundering that was committed. Prosecutors pointed to “considerable defects” in the bank’s risk management, compliance, and internal directives systems in connection with combating money laundering. This failure allowed suspicious funds, allegedly obtained through bribery of Mozambican officials, to be transferred. Credit Suisse only reported its suspicion to Switzerland’s Money Laundering Reporting Office (MROS) in 2019, long after the transactions and the public exposure of the scandal.

2. Charge Against the Former Employee

This is a charge targeting an individual for their direct involvement and negligence.

• Accused Individual: An unnamed former Credit Suisse compliance officer.
• Charge: Money Laundering (under Article 305bis of the Swiss Criminal Code).
• Allegation Details: The former compliance officer was tasked with investigating the suspicious transfer of approximately $7.9 million from the Mozambique Finance Ministry to a client’s account in 2016. Despite having “numerous indications” that the funds could be of illicit origin, the officer allegedly recommended to management not to file a report to money laundering authorities (MROS) but merely to terminate the business relationship. By recommending termination and carelessly handling the investigation, the compliance officer is accused of having “caused or allowed” the remaining suspect funds to be transferred abroad and thus laundered.

The OAG has dropped criminal proceedings against another former Credit Suisse employee in the same case for reasons of “procedural economy,” given that the case against the compliance officer largely covers the same set of circumstances. UBS has publicly stated it firmly rejects the conclusions against the bank entity and will vigorously defend its position.