Former Credit Suisse compliance head fined CHF100,000 for failing to report money laundering suspicions related to a $2 billion Mozambique financing scandal. The scandal involved loans to state-owned companies intended for maritime security and tuna fleet development, but led to significant financial misappropriations.
The Swiss Federal Department of Finance has imposed a fine of CHF100,000 (approximately $114,000) on the former head of risk and compliance at Credit Suisse due to a failure to timely report suspicions of money laundering linked to the Mozambique financing scandal.
The penal order, which is accessible to the Keystone-SDA news agency, states that the individual was aware of the suspicious activities but neglected to report them to the Money Laundering Reporting Office in Switzerland (MROS). This scandal involved loans totaling $2 billion to Mozambican state-owned companies, intended for coastguard enhancement and tuna fleet development.
Instead of achieving its intended purpose, the financing resulted in the diversion of hundreds of millions of dollars. Credit Suisse has been subjected to fines amounting to approximately half a billion dollars from U.S. authorities in connection with this matter, although the accused’s attorney has rejected the allegations.
The imposition of a fine on the former Credit Suisse manager highlights the significance of regulatory compliance and the consequences of neglecting responsibilities relating to money laundering suspicions. The Mozambique financing scandal serves as a cautionary tale regarding financial oversight and accountability in multinational banking operations. Furthermore, the ongoing repercussions for Credit Suisse, including substantial fines, illustrate the gravity of the situation.
Original Source: www.swissinfo.ch
