Credit Suisse and UBS Face Charges in Mozambique ‘Tuna Bonds’ scandal
zurich, Switzerland – Switzerland’s federal prosecutor has filed criminal charges against both failed bank Credit Suisse and its current owner, UBS, stemming from the decade-old “tuna bonds” scandal that devastated Mozambique’s economy. The charges center around allegations of money laundering and meaningful organizational failings that allowed illicit transactions too go unreported for years.
The Swiss attorney general’s office announced Monday that an unnamed Credit Suisse employee is also facing money-laundering charges. The investigation alleges that both banks exhibited “organisational deficiencies” in their risk management, compliance, and internal directives, specifically regarding anti-money laundering protocols. These shortcomings allegedly prevented the detection and reporting of suspicious transactions until 2019 – well after the US Department of Justice initiated its own criminal investigation.
UBS, which acquired Credit Suisse in a landmark emergency rescue deal in 2023, vehemently denies the allegations, stating it “firmly rejects the office of the attorney general’s conclusions and will vigorously defend our position.”
The scandal revolves around $2 billion in loans Credit suisse arranged for Mozambique between 2013 and 2016.These loans were ostensibly intended to fund government-sponsored projects, including maritime security and a state-run tuna fishery. however, a substantial portion of the funds vanished, with evidence revealing at least $137 million in kickbacks – including $50 million paid to Credit Suisse bankers – to secure favorable loan terms, as detailed by the Financial Conduct Authority.
the fallout from the scheme was catastrophic for Mozambique, leading to the suspension of aid from the International Monetary Fund and triggering a severe economic crisis.
This isn’t the first time Credit Suisse has faced repercussions for its role in the scandal. In 2021, the bank settled with US and UK regulators, paying $275 million to American authorities and £147 million to the British Financial Conduct Authority. However, the new charges against both Credit Suisse and UBS signal a continued and intensified effort to hold the institutions accountable for the far-reaching consequences of the “tuna bonds” affair.
What specific failures in due diligence and risk management led to the charges against Credit Suisse and UBS?
Switzerland charges Credit Suisse and UBS in ‘tuna Bonds’ Financial Scandal Inquiry
The Core of the ‘Tuna Bonds’ Scandal
The swiss Attorney General’s Office has formally charged both Credit Suisse and UBS – now merged – with aggravated misconduct in connection with the $2 billion “tuna bonds” scandal.This case centers around loans made to Mozambique state-owned companies between 2013 and 2014, ostensibly to finance a tuna fishing fleet and maritime security. However, a significant portion of the funds were allegedly diverted for bribes and kickbacks, leading to a sovereign debt crisis in Mozambique.
Key terms frequently searched related to this scandal include: Mozambique debt crisis, tuna bonds fraud, Credit Suisse Mozambique, UBS financial crime, and Swiss banking scandal.
Charges and Allegations: A Breakdown
The charges against the banks are severe,focusing on failures in due diligence and risk management. Specifically, the Attorney General alleges:
* Criminal association: Both banks are accused of participating in a criminal organization and violating Swiss banking laws.
* Aggravated Misconduct: This relates to the banks’ alleged failure to adequately monitor and report suspicious transactions.
* Breach of Fiduciary Duty: The banks are accused of prioritizing profits over responsible lending practices and failing to protect the interests of investors and Mozambique itself.
* Lack of Internal Controls: Investigations revealed significant deficiencies in the banks’ internal controls, allowing the fraudulent scheme to flourish.
Key Players and Their Roles
Several individuals are also facing charges in connection with the scandal. These include former Credit Suisse bankers and government officials from mozambique.
* Jean-Baptiste Bandeira: A former Credit Suisse banker, accused of orchestrating the scheme.
* Armando Guebuza: Son of former Mozambican President armando Guebuza, implicated in receiving bribes.
* manuel Chang: A former Mozambican finance minister, central to the loan negotiations and alleged to have received considerable kickbacks. Chang was arrested in South Africa in 2018 and extradited to the US, where he pleaded guilty to conspiracy charges in 2019.
The Timeline of Events: From Loans to Legal Action
Understanding the chronology is crucial to grasping the complexity of the case:
- 2013-2014: Credit Suisse and VTB Capital (a Russian bank) arrange loans totaling $2 billion to Mozambique’s state-owned companies Ematum, Proindicus, and MAM.
- 2016: Mozambique defaults on its debt payments, triggering an international financial crisis.
- 2017: An independent audit reveals that $200 million of the loan proceeds are unaccounted for.
- 2018: Investigations begin in Mozambique, South Africa, and Switzerland.Manuel Chang is arrested.
- 2019: US charges are filed against Chang and others.
- 2021: Swiss authorities open formal criminal proceedings against Credit Suisse.
- 2023: UBS acquires Credit Suisse following its near collapse.
- December 1, 2025: Formal charges are filed against both Credit Suisse and UBS by the Swiss Attorney General.
Impact on UBS and the swiss Banking Sector
The charges represent a significant blow to UBS, even after absorbing Credit Suisse. The potential financial penalties are substantial, and the scandal further damages the reputation of the Swiss banking sector, already under scrutiny for its handling of illicit funds.
* Financial Penalties: UBS coudl face fines exceeding $2 billion, plus potential confiscation of profits.
* Reputational Damage: The scandal reinforces negative perceptions of swiss banking secrecy and lack of transparency.
* Regulatory Scrutiny: Increased regulatory oversight is expected, potentially leading to stricter compliance requirements for all Swiss banks.
* Investor Confidence: The scandal may erode investor confidence in UBS and the broader Swiss financial market.
Mozambique’s Outlook: A Nation in Debt
The “tuna bonds” scandal has had a devastating impact on Mozambique, one of the world’s poorest countries. The hidden debt plunged the nation into a sovereign debt crisis, hindering economic advancement and exacerbating poverty.
* Economic Hardship: The debt crisis led to a sharp devaluation of the Mozambican currency and a surge in inflation.
* Reduced Public Spending: The government was forced to cut spending on essential services like healthcare and education.
* Loss of Investor Trust: The scandal damaged Mozambique’s credibility with international investors.
* Ongoing Legal Battles: Mozambique is pursuing legal action to recover the stolen funds.
Related Search Terms & further Investigation
For those seeking more facts, consider these related search terms: Mozambique sovereign debt, financial crime investigation, Credit Suisse scandal timeline, UBS compliance failures, Manuel Chang extradition, tuna bonds case study.
resources for further investigation include:
* The Swiss Attorney General’s Office: https://www.ba.admin.ch/en
* Reuters Reporting on the Scandal: [https://www.
