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

Swiss Prosecutors File Charges Against Credit Suisse and UBS Over Multibillion-Dollar "Tuna Bonds" Scandal

Federal prosecutors in Switzerland have filed charges against two major banks, Credit Suisse and UBS, over the long-running "tuna bonds" scandal that led to a near-collapse of Mozambique's economy. The case involves the alleged failure of both banks to prevent money laundering, with Swiss authorities accusing them of "organisational deficiencies" that allowed suspicious transactions to go unreported for nearly four years.

The scandal centers on $2 billion worth of loans arranged by Credit Suisse between 2013 and 2016 for Mozambique's government-sponsored investment schemes. The funds were supposedly allocated to maritime security projects and a state tuna fishery, but an investigation found that large portions of the money went missing, with contractors secretly arranging multi-million-dollar kickbacks.

Credit Suisse had already agreed to pay $275 million to regulators in the US and £147 million in the UK as part of its settlement with regulatory bodies. However, Swiss prosecutors now say that the bank and UBS did not take adequate measures to prevent money laundering and that these deficiencies contributed to the failure to report suspicious transactions.

UBS took over Credit Suisse as part of an emergency rescue deal brokered by Swiss authorities in 2023. The new owner has denied any wrongdoing, stating that it "firmly rejects the conclusions of the office of the attorney general's" and will "vigorously defend our position."

I'm low-key shocked this took so long to happen! Did you know that Credit Suisse and UBS already paid out over $422 million in settlements? Like, that's a lot of tuna...I mean, money. The "tuna bonds" scandal has led to some major financial repercussions, with the Swiss government accusing these two banks of having huge organisational deficiencies that let suspicious transactions go unreported for nearly four years ! It's crazy how this scandal affected Mozambique's economy – $2 billion in loans went missing, and who knows how much more?

According to a report by Bloomberg, Credit Suisse had almost 1,400 employees involved in Mozambique, which is insane. I wonder how many of them knew about the kickbacks? Anyway, it's good that Swiss prosecutors are taking action – here are some stats on money laundering: in 2022, the global money laundering risk assessment was estimated at $31 trillion ! The numbers don't lie, folks.

Anyway, I'm curious to see how this plays out. Will UBS be held accountable too? Shouldn't they've taken better measures to prevent money laundering? Here are some more stats: in 2023, the total amount of illicit capital laundered globally was estimated at $1.75 trillion . This is why transparency and regulation are so important.

I think its crazy how one scandal can have such far-reaching consequences... I mean, Credit Suisse and UBS are two of the biggest banks in the world, and they're getting taken down over a money laundering scheme that sounds like it could've been prevented. The fact that the "tuna bonds" were just a front for kickbacks is wild... its like these big corporations think they can get away with anything as long as they've got deep pockets. I guess this is why you see these huge fines and settlements - to make an example out of them, so others don't follow in their footsteps.

just read about the Credit Suisse & UBS scandal its crazy how they didnt report suspicious transactions for 4 years I mean, its not like they were hiding it from everyone, but still... how much money went missing tho? $2 billion is a lot of cash and now Swiss prosecutors are saying these banks had "organisational deficiencies" that led to the whole mess does anyone know what thats even supposed to mean?

I gotta say, these big bank deals always seem like a total mess . Like, who lets $2 billion just disappear? And UBS and Credit Suisse got off relatively scot-free compared to others involved, if you ask me. They're basically saying they didn't do anything wrong, which is kinda weird when there's video evidence of kickbacks and whatnot. I mean, I get it, these banks have some serious resources, but that shouldn't mean they can just shrug off all this shady business. It's like, come on guys, take responsibility for your own stuff! And another thing, if UBS is so sure they didn't do anything wrong, why are they still getting probed by Swiss authorities? You'd think they'd be shouting from the rooftops by now that everything is fine .

can't believe these big banks got away with this for so long they were literally printing their own money and no one caught on... i mean what's next, another bank scandal? this just makes me wanna invest in something else lol seriously though, gotta give it to the regulators for finally taking action. but still, 2 billion dollars missing from a tuna fishery? that's some crazy stuff

idk how these banks got away with this for so long . $2 billion just vanished into thin air? It's crazy that they were able to get away with it for 4 years without anyone noticing . And now Credit Suisse is already paying out £147m, which is a drop in the bucket compared to what actually went missing . But at least someone's being held accountable... I guess . Can we get some details on how these banks' organisational deficiencies allowed this to happen? Were they just too busy making money or something?

I'm shocked they're still dealing with this tuna bonds scandal... like how many times do you have to mess up before you get caught? Credit Suisse is already slapping themselves on the wrist by paying out so much, but $275 million isn't gonna cut it if they didn't actually stop the money laundering. And now UBS is taking over and saying "we had no part" in all this... sounds like a pretty convenient spin to me .

It's crazy that these banks thought they could get away with it for so long, and the people of Mozambique suffered because of it . The whole thing feels like a big mess, and I'm not sure how either bank is gonna come out of this without losing some serious trust ...