Taking a new turn on an old scandal, Swiss regulators filed money laundering charges against Credit Suisse, its owner the Union Bank of Switzerland (UBS) and an unnamed employee.
Between 2013 and 2016, approximately $2 billion in financing was provided by Credit Suisse Group AG to support and grow a tuna fishing fleet in Mozambique and generally support its maritime economy. The financial fallout that followed is known as the “tuna bonds scandal.”
Credit Suisse, the Mozambican-owned Empresa Moçambicana de Atum (EMATUM) and the Russian financial entity VTB were at the heart of the scandal which involved a whirlwind of corruption, conspiracy, embezzlement, kickbacks, tax evasion and bribes. When the enormous grift was discovered, it led to suspension of aid funds to Mozambique which contributed to economic collapse. Many residents were pushed further into poverty as growth slowed and investors withdrew.
Not surprisingly, Credit Suisse paid fines to extricate itself from the mess. Credit Suisse entered into an agreement with the United Kingdom and the United States to pay $475 million, in addition to restitution.
That was then, but why now?
In early December, Swiss prosecutors launched new allegations against Credit Suisse related to the matter. Notably, UBS, which acquired Credit Suisse in 2023 to prevent financial collapse, was also named.
During the original scandal, Credit Suisse admitted it failed to act on clear red flags surrounding the tuna transactions, including evidence of bribery and corruption. For example, when independent experts retained to value the fishing vessels and related assets identified a shortfall of between $25 million and $395 million, Credit Suisse did not disclose the findings.
The new allegations focus on steps Credit Suisse allegedly failed to take to identify and prevent money laundering. A former Credit Suisse employee, whose name has not been released, also faces money laundering charges. Although UBS did not acquire Credit Suisse until 2023, years after the tuna bonds transactions, it is named in the case based on alleged organizational deficiencies.
In 2023, UBS settled a lawsuit with Mozambique seeking $1.5 billion in damages related to the scandal. The dispute was resolved when UBS forgave a $100 million loan that had been part of the tuna bonds financing structure.
As for being drawn back into the controversy, UBS stated, "We firmly reject the Office of the Attorney General's conclusions and will vigorously defend our position.”
Why this case still matters
The Credit Suisse matter illustrates how failures in financial oversight and anti-money laundering controls can resurface years later, even after transactions close and corporate ownership changes. For institutions and individuals involved in complex international activity, regulatory exposure does not always end when a deal does.
For those facing questions related to financial transactions, tax exposure or regulatory scrutiny, early legal guidance can help clarify options and manage risk. The attorneys at Robert J. Fedor, Esq., L.L.C., advise individuals and businesses on tax fraud and financial crime matters. Call 440-250-9709 to discuss your situation. We serve clients nationwide and internationally from offices in Cleveland and Chicago.
For a practical resource on how tax fraud and financial crime investigations develop, download our free ebook, "Understanding Tax Fraud." It outlines common enforcement triggers, investigative approaches and key considerations that often arise in complex cases.
