Swiss prosecutors file charges against Credit Suisse and UBS over ‘tuna bonds' scandal

Core Points - Switzerland's federal prosecutor has filed charges against Credit Suisse and UBS over the "tuna bonds" loan scandal that significantly impacted Mozambique's economy nearly a decade ago [1][2] - The charges include money laundering against an unnamed Credit Suisse employee, with accusations of "organizational deficiencies" in both banks that allowed wrongdoing to occur [2][5] - The scandal involved $2 billion in loans arranged by Credit Suisse for Mozambique, with funds misappropriated and kickbacks totaling at least $137 million [3][4] Summary by Sections - Charges and Accusations - The Swiss attorney general's office has accused Credit Suisse and UBS of failing to implement necessary organizational measures to prevent money laundering during 2016 [5] - UBS has stated it will vigorously defend its position against the attorney general's conclusions [2] - Background of the Scandal - The tuna bonds scandal originated from loans intended for government-sponsored projects, including maritime security and a state tuna fishery [2] - A contractor was found to have arranged significant kickbacks, including $50 million for Credit Suisse bankers [3] - Regulatory Settlements - Credit Suisse settled with US and UK regulators in 2021, paying $275 million to American authorities and £147 million to the UK's Financial Conduct Authority [4] - UBS agreed to settle with Mozambique in October 2023, just before a trial was set to begin in London [4] - Impact on Credit Suisse - Credit Suisse was sold to UBS in March 2023 amid a banking crisis, with UBS acquiring the bank for 3 billion Swiss francs [5][7] - The crisis of confidence in Credit Suisse was exacerbated by its largest shareholder, Saudi National Bank, ruling out further funding [6]