About a decade later, the case of tuna bonds still messes with the courts. Swiss authorities have accused a former employee of Credit Suisse, integrated into UBS from 2023, of money laundering. At issue is a loan worth around 2 billion dollars (around €1.7 billion, in current conversion) that the Swiss bank granted to the Government of Mozambique, in 2013, for major public works and support for tuna fishing, which caused a financial crisis in the country years later, as soon as the veil on the entire operation was revealed.
In the middle of this amount, it was a transfer of 7.9 million dollars (equivalent to €6.8 million) carried out in 2013, which triggered the investigation. The money went from the Ministry of Economy and Finance of Mozambique to a Credit Suisse account in Switzerland, which ended up being diverted to accounts in the United Arab Emirates. THE responsible for compliance of Credit Suisse, at the time, recommended that the case not be reported to money laundering control authorities, instead suggesting the termination of the commercial relationship. Credit Suisse only reported the transaction in 2019, after the US Department of Justice initiated criminal proceedings related to the Mozambican loans.
In this new chapter, the Swiss prosecutor accused the bank and UBS of “organizational deficiencies” that prevented the prevention of illicit practices. In a statement, UBS firmly rejected the findings and said it will vigorously defend its position.
The scandal of tuna bonds dates back to the period between 2013 and 2016. Mozambique, one of the poorest countries in the world, used international loans to finance maritime security projects and a state-owned tuna fishing fleet. Three state-owned companies, Ematum, Proindicus and MAM Mozambique, closed loans totaling around US$2 billion, intermediated by Credit Suisse. Officially, the funds were intended to protect the Mozambican coast and develop the tuna fishing industry, but much of the money was allegedly diverted.
According to the decision of the North American courtwhere Credit Suisse has already been accused in 2021, Mozambican officials and bankers received bribes totaling at least 137 million dollars, including 50 million going to Credit Suisse employees to secure more favorable terms on loans. A significant part of the funds was not accounted for and was used in private interests, far from the public projects that justified the loans.
The scandal only came to light in 2016, when investors and international authorities began to investigate the loans. The revelation of hidden debts caused an immediate economic crisis in Mozambique, leading the International Monetary Fund to suspend financial assistance to the country.
Credit Suisse has already paid fines in the US and UK
Credit Suisse has faced regulatory proceedings in the US and UK. In 2021, it paid US$475 million to the American authorities and £147 million (€165 million) to the British Financial Conduct Authority, recognizing supervisory failures in Mozambican loans. In 2023, UBS reached an agreement with the Mozambican government, ahead of the scheduled start of a trial in London, resolving disputes relating to the coastal and tuna fishing fleet. Mozambique was demanding US$1.5 billion in compensation for economic losses resulting from the suspension of support from the IMF and international donors.
Credit Suisse, which was already experiencing reputation problems, entered 2023 in a crisis of confidence when clients began to withdraw funds, worsened by the fact that the largest shareholder, the Saudi National Bank, refused any additional financing. The Swiss authorities intervened with emergency loans, culminating in an emergency merger with UBS, which acquired the bank for three billion Swiss francs (€3.2 billion at current exchange rates). This operation left UBS to manage a series of legacy scandals, from regulatory proceedings to investor legal actions and allegations of financial misconduct.
In addition, UBS has had to deal with other Credit Suisse-related litigation, including fines for links to the Archegos Capital Management fund and mortgage securities lawsuits before the 2008 crisis, as well as U.S. Department of Justice investigations into how Credit Suisse helped wealthy clients hide more than $4 billion from authorities.
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