Credit Suisse is reportedly nearly off the book with British regulators in a money laundering scandal in Mozambique. The Swiss bank is still in the crosshairs of American investigators.
Zurich-based Credit Suisse is no longer under threat of investigation for alleged money laundering violations in the U.K., which has «downgraded» the case to a regulatory investigation, the«Financial Times» reported on Monday.
The move takes some of the heat out of the «tuna bond» case for the Swiss bank. At worst, Credit Suisse will have to pay a fine and accept restrictions on its business – a mild outcome, compared to a criminal investigation, which could have meant jail time for individuals.
«Secret» Loans
The case stems from Credit Suisse loans to Mozambique in 2012 and 2013 of more than $2 billion, which were kept from international creditors including the International Monetary Fund, or IMF.
The funds were in part diverted to purchasing a fleet of tuna boats and other maritime infrastructure. Roughly $500 million was misappropriated, according to forensic consultant Kroll. Credit Suisse earned millions in fees for the loans to Mozambique, which in turn defaulted on its debt.
U.S., Swiss Probes Ongoing
As a major lender to the impoverished southern African nation, Credit Suisse's name splashed onto the front pages after the IMF halted payments to Mozambique when the country's debt situation became clear.
Besides the U.K.'s Financial Conduct Authority, Swiss regulator Finma and U.S. agencies the Securities and Exchange Commission and the Department of Justice also opened investigations. Those probes, which also include Russian VT Bank and France's BNP Paribas, are still ongoing.
