Credit Suisse risks sanctions for loan agreements in Mozambique


ZURICH (AP) – Credit Suisse has announced settlements with UK, Swiss and US authorities over loans to state-owned enterprises in Mozambique, with the Swiss Financial Markets Authority setting new restrictions on the bank of foreground and stating that it was “seriously violated” anti-money laundering requirements in the case.

The Zurich-based bank said it expects to take a charge of $ 230 million in the third quarter as part of the settlements. He said the US settlement involved some $ 275 million and that he planned to pay a penalty of around $ 200 million and cancel loans worth $ 200 million to the Mozambican government under of an agreement with the British regulators.

Swiss financial market authority FINMA said Credit Suisse violated its obligation to file a “suspicious activity report” in the case and failed to properly account for the risks associated with certain transactions lending with governments.

In 2013, the bank’s British subsidiaries arranged two loans guaranteed by the Mozambican government totaling $ 1 billion, or nearly 6% of the country’s economic output, to state-owned companies ProIndicus and Empresa Mocambiana de Atum, or EMATUM, the Swiss authority said. The loans were primarily intended to be used to pay for maritime security vessels and a tuna fleet, he said.

“There are high reputational risks associated with large loans to financially weak or corrupt countries,” said FINMA. “Credit Suisse seriously violated the organizational requirements and reporting obligations (anti-money laundering law) regarding the loans it made to state-owned companies in Mozambique in 2013.”

The Swiss authority said Credit Suisse has already taken steps to improve its risk management and control systems, but will appoint an independent third party to review the measures put in place and ensure they are implemented. effective.

He also said that Credit Suisse’s existing credit transactions with “financially weak and corruption-prone state or companies with guarantees from those states” should be reviewed by an independent third party.

Two years ago, US prosecutors indicted five people, including former Credit Suisse bankers Andrew Pearse, Surjan Singh and Detelina Subeva, in a $ 2 billion fraud involving bogus naval, fishing and other projects. in Mozambique.

Tuesday night’s announcements close the UK, Swiss and US cases.

The Mozambique affair, dating from activities between 2013 and 2016, highlights a new episode of unrest for Credit Suisse. Earlier this year, FINMA said it was looking into possible sanctions against Credit Suisse for its announcement of billions of dollars in losses linked to a default on margin calls from US firm Archegos Capital.

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