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Credit Suisse Settles Mozambique’s “Tuna Bonds” Proceedings with US Regulators

Credit Suisse has agreed to pay at least $ 400 million to resolve a lengthy US investigation into its role in Mozambique’s $ 2 billion “tuna bond” scandal.

A lawyer representing a Swiss bank subsidiary attended a hearing in Brooklyn on Tuesday and pleaded guilty to wire fraud. 8 year old case It caused a slowdown in what was one of Africa’s fastest growing economies. Credit Suisse has also signed a deferral of prosecution agreement with US authorities.

Banks tried to draw a line under a series of historic scandals, despite dealing with the aftershocks of the twin implosion of a niche financial company Greensill Capital And family office Archegos Capital This spring.

However, Credit Suisse, who declined to comment, is facing a civil trial over the Mozambique proceedings filed by London creditors. In August, the judge of the High Court, who presided over the proceedings, set the date of September 2023. 13-week trial.. The US settlement was first reported by Bloomberg.

Tim Jones, policy director for the Jubilee debt campaign, a financial pressure group, said British authorities were unable to properly investigate banks despite Mozambique’s loan from the United Kingdom.

“It’s been more than five years since the hidden loan was first revealed,” he said. “The failure of this action is a terrible neglect of duty on the part of the Financial Conduct Authority and the Serious Fraud Office.”

Since 2013, Credit Suisse and Russian investment bank VTB have arranged $ 2 billion in bonds and loans to Mozambique. This is to ensure maritime safety by establishing a national tuna fishing fleet after the country discovers offshore natural gas.

The loan was made by a company to purchase equipment, including boats, from Gulf shipbuilder Privinvest, using state guarantees issued without the approval of the Mozambique Parliament. The true size of debt was hidden from international donors and the IMF until 2016.

The discovery of loans, the collapse of businesses, and the subsequent defaults have left one of the poorest countries in the world in a year-long financial crisis as donors cut off aid. The national public integrity center estimates that fallout has driven Mozambiques over 1.9 meters into poverty.

The investigation revealed that the $ 500 million loan raised could not be funded. US prosecutors said $ 200 million had disappeared in the kickback of Mozambique officials.

Three former Credit Suisse bankers who arranged the bonds pleaded guilty to handling the kickback, albeit in a groundbreaking US trial. 2019, The Privinvest salesman was acquitted in all respects. Privinvest denies cheating.

Mozambique is currently conducting the largest criminal justice over scandals, involving more than 12 suspects, including former government officials and the son of a former president. They denied allegations including corruption and money laundering.

The province of Mozambique and Credit Suisse are also suing each other in court in London, each in turn from the debt investor.

The Financial Conduct Authority of the United Kingdom has dropped its own criminal investigation into Credit Suisse over the 2018 Mozambique scandal.

Additional Report by Stephen Morris and Stephania Palma

Credit Suisse Settles Mozambique’s “Tuna Bonds” Proceedings with US Regulators

Source link Credit Suisse Settles Mozambique’s “Tuna Bonds” Proceedings with US Regulators

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