‘Tainted transactions!’ Swiss bank faces £350m fine after Mozambique ‘tuna bonds’ scandal – Diverse Bulletin

Credit Suisse, based in Zurich, was slapped with a fine of around £344.33million ($475million). The fee – which will be paid to regulators in the UK, Switzerland and the US – came following the investment bank’s involvement in a scandal associated with Mozambique’s fishing industry.’

Credit Suisse will pay British authorities £147million alone.

Staff from Credit Suisse had been accused of taking and dishing out bribes as a part of arranged loans worth £940million ($1.3billion) between 2012 and 2016.

Reports claim the loans were handed to Government-backed schemes, including maritime security projects and a state tuna fishery located in the capital, Maputo.

The BBC notes Britain’s Financial Conduct Authority (FCA) said Credit Suisse had “failed to properly manage the risk of financial crime”.

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The executive director of enforcement Mark Steward added: “The FCA’s fine reflects the impact of these tainted transactions, which included a debt crisis and economic harm for the people of Mozambique.

“The fine would have been higher if not for Credit Suisse agreeing to provide the debt write-off of $200m.”

According to a statement issued by the FCA: “The contractor secretly paid significant kickbacks, estimated at over US$50 million, to members of Credit Suisse’s deal team, including two Managing Directors, in order to secure the loans at more favourable terms.”

The statement added: “Credit Suisse was aware Mozambique was a jurisdiction where the risk of corruption of government officials was high and that the projects were not subject to public scrutiny or formal procurement processes.

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This led the country’s economy to crash.

According to the Guardian, a statement issued by Credit Suisse said the investment bank “condemn[s] any unjustified observations and has already taken decisive steps to strengthen its relevant governance and processes.”

The statement added: “Credit Suisse is satisfied with the completion of the proceedings by US, UK and Swiss regulatory authorities into the bank’s arrangement of loan financing for Mozambique state enterprises and can now draw a line under the observation matter.”

The Fort News