Business & Investment

Reuters said Credit Suisse will pay $ 475 million to resolve Mozambique’s scandal charges

© Reuters. File Photo: On September 1, 2015, you can see the Credit Suisse sign on the exterior of the Americas headquarters in the Manhattan district of New York City.Reuters / Mike Seger / File Photo

Chris Prentice

(Reuters)-Credit Suisse Group AG has agreed to pay US and UK authorities approximately $ 475 million to resolve bribes and fraud related to Mozambique’s bond offerings. .. Meanwhile, the subsidiary pleaded guilty to conspiracy in New York. Annoyed Swiss banks.

The charges of bribery and fraud filed by the US Securities and Exchange Commission (SEC), the US Department of Justice, and the Financial Conduct Authority of the United Kingdom have been filed by Zurich-based banks in a $ 2 billion scandal, including a Mozambique government-guaranteed loan. I focused on my role.

SEC said Credit suisse (SIX :) A scheme that includes two bond offerings and a syndicated loan to raise money on behalf of Mozambique’s state-owned enterprise, misleading investors and violating US bribery law.

The bank has signed a postponed prosecution agreement with the U.S. Department of Justice, but its subsidiary Credit Suisse Securities (Europe) Limited (CSSEL) is guilty of conspiracy to commit a transfer fraud in a U.S. federal court in New York. I admitted.

As part of the settlement, Credit Suisse has agreed to pay UK authorities a fine of approximately $ 200 million and forgive Mozambique’s $ 200 million debt. As a result, the bank said it expects to cost $ 230 million in the third quarter of 2021.

“We are pleased with the completion of the US, UK and Swiss regulators’ procedures for bank lending arrangements for Mozambique state-owned enterprises,” Credit Suisse said in a statement.

The London-based subsidiary of Russian bank VTB has also agreed to pay more than $ 6 million to settle SEC costs associated with Mozambique’s loan. “VTB took today’s settlement seriously and fully cooperated with the SEC’s investigation,” the bank said.

Credit Suisse is involved in a series of scandals USA Customer losses due to the collapse of the family office Archegos, the collapse of supply chain finance Greensill, and allegations of corporate espionage.

Antonio Orta Osorio, chairman of the bank, who joined the bank in April from LON: in the UK, said the scandal facing the bank was the most serious of his career.

The US settlement was announced minutes before Swiss financial regulators filed a proceeding against banks for snooping on former wealth management chief executive Iqbal Khan and others.

FINMA, the Swiss Financial Markets Supervisory Authority, said banks were found to have “serious organizational flaws” surrounding espionage, eventually causing the resignation of CEO Tidjane Thiam.

FINMA said in a statement that it had imposed action on banks, rebuked two individuals and initiated enforcement proceedings unnamed against three additional individuals.

Credit Suisse said in a statement that Tuesday’s actions could “draw a line” on the Mozambique issue. Credit Suisse added that “banks have already taken decisive steps to condemn unjustified observations and strengthen relevant governance and processes” regarding the cause of the FINMA proceedings.

The SEC’s Tuesday resolution is the latest development in Credit Suisse’s multi-year Mozambique story, and private proceedings are still underway. African countries are suing Credit Suisse and shipbuilder Privin Best in London’s High Court over most of the missing $ 2 billion loan.

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Reuters said Credit Suisse will pay $ 475 million to resolve Mozambique’s scandal charges Reuters said Credit Suisse will pay $ 475 million to resolve Mozambique’s scandal charges

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