Swiss prosecutors file criminal charges against UBS and its former subsidiary Credit Suisse
- By GCI
Swiss prosecutors have filed criminal charges against UBS and its former subsidiary Credit Suisse, alleging serious failures in preventing money laundering linked to Mozambique’s notorious “tuna bonds” scandal. The case revives one of the most damaging episodes in Credit Suisse’s history and places UBS, which absorbed the troubled bank in 2023, directly in the spotlight.
The charges stem from loans worth more than $2 billion that Credit Suisse helped arrange between 2013 and 2016 for state-owned companies in Mozambique. These loans were intended to fund maritime security and tuna fishing projects but were largely misused, plunging the country into a debt crisis and sparking international investigations. Prosecutors argue that Credit Suisse, and now UBS as its legal successor, failed to maintain adequate organizational safeguards to prevent money laundering tied to the scheme.
In addition to the corporate charges, a former Credit Suisse employee faces aggravated money laundering accusations, while proceedings against another ex-staffer were dropped. UBS has rejected the allegations, stating it will vigorously defend itself against the claims. The announcement rattled investors, with UBS shares falling sharply as concerns mounted over reputational and financial risks.
This case underscores Switzerland’s willingness to hold institutions accountable under laws that allow companies to be prosecuted for organizational deficiencies. It also highlights the enduring compliance lessons from the tuna bonds scandal: the importance of robust anti-money laundering controls, organizational accountability, and the risks that successor institutions inherit when absorbing troubled banks.