By John Revill and Dave Graham ZURICH, Dec 1 (Reuters) - Swiss federal prosecutors on Monday accused UBS-owned Credit Suisse of failing to prevent money laundering linked to loans granted to
UBS Faces Indictment Over Credit Suisse Money Laundering Case
By John Revill and Dave Graham
ZURICH, Dec 1 (Reuters) - Swiss federal prosecutors on Monday accused UBS-owned Credit Suisse of failing to prevent money laundering linked to loans granted to Mozambique's tuna fishing fleet, which triggered an economic crisis in the African country nearly a decade ago.
Switzerland's Attorney General's Office (OAG) alleges Credit Suisse and its legal successor UBS are liable for failing to prevent the offence due to organisational deficiencies.
The OAG has also charged a former Credit Suisse employee with money laundering, while criminal proceedings against another former employee of the Swiss bank have been dropped.
UBS REJECTS ALLEGATIONS
UBS rejected the allegations, which date back to events that came to light in 2016, long before its 2023 takeover of Credit Suisse.
"We firmly reject the Office of the Attorney General's conclusions and will vigorously defend our position," UBS said in a statement.
The Mozambique tuna bonds scandal landed Credit Suisse with a hefty fine, and an investigation into transfers of suspected bribes through its accounts has now embroiled UBS too.
The case relates to loans of more than $2 billion granted by Credit Suisse to state-owned companies in Mozambique - an affair that became known as the tuna bonds scandal - and the bank's commercial relationship with a foreign company.
Some $7.9 million was allegedly transferred from the Mozambique Finance Ministry to accounts held by the company with Credit Suisse in Switzerland, prosecutors said.
MONEY OBTAINED THROUGH BRIBES, PROSECUTOR SAYS
The OAG indictment alleges that the money received was obtained or facilitated through bribery of Mozambican officials and public sector misconduct.
After the money was credited, the account holder transferred $7 million to accounts in the United Arab Emirates.
When Credit Suisse began enquiries into the commercial relationship, the compliance officer allegedly recommended the bank should not file a report to money laundering authorities, but instead terminate the relationship.
In March, the Swiss finance ministry fined Credit Suisse's ex-compliance chief for failing to notify anti-money laundering authorities about the transaction.
She challenged the fine and her lawyer said it was not her decision not to file a money laundering report.
The OAG noted that case had gone to appeal, and said given the allegations against both former CS employees were largely based on the same circumstances, another parallel prosecution was not warranted for reasons of "procedural economy".
Credit Suisse agreed in 2021 to pay about $475 million to U.S. and British authorities to resolve bribery and fraud charges related to the scandal.
When the affair came to light, donors such as the International Monetary Fund temporarily halted support, triggering a currency collapse, defaults and financial turmoil.
(Reporting by John Revill, Oliver Hirt, Dave Graham and Ludwig Burger, editing by Thomas Seythal and Alexander Smith)
