Switzerland’s federal prosecutor has filed an indictment against a former Credit Suisse compliance officer and charged Credit Suisse Group SA and its successor companies UBS SA and UBS Group SA over alleged failures linked to loans granted to Mozambican state-owned firms in 2013, a saga widely known as the Mozambique Debt Scandal.

The Office of the Attorney General alleges the former Credit Suisse employee committed money laundering in relation to transfers connected to the loans. The case centres on payments of around USD 7.86 million sent in spring 2016 from Mozambique’s Ministry of Economy and Finance to accounts at Credit Suisse in Switzerland held by a foreign company said to be involved in the loan transactions.

According to the indictment, the funds stemmed from a state‑guaranteed running fee paid for purported services connected to the loans and are presumed to have been obtained or facilitated through offences in Mozambique, including bribery and misconduct in public office. Shortly after the money arrived, USD 7 million was transferred to bank accounts in the United Arab Emirates, prompting internal enquiries at Credit Suisse.

The prosecutor says the compliance officer advised against reporting the transactions to Switzerland’s Money Laundering Reporting Office and recommended terminating the relationship instead. During the termination in autumn 2016, remaining funds of around USD 609,000 and CHF 28,000 were moved abroad. The Office of the Attorney General alleges that by recommending termination and handling the investigation without due care, the compliance officer caused or permitted suspect funds to be transferred and laundered, and has charged her under Article 305bis of the Swiss Criminal Code.

Separately, Credit Suisse Group SA and Credit Suisse, now succeeded by UBS SA and UBS Group SA following the 2023 takeover, are accused under Article 102 in conjunction with Article 305bis of failing to take all required and reasonable organisational measures in 2016 to prevent money laundering. The indictment cites “considerable defects” in risk management, compliance and internal directives, and notes that a suspicious activity report was only filed in 2019 after the US Department of Justice announced related proceedings.

Reuters reported: “Switzerland’s federal prosecutor on Monday said it has filed an indictment against a former Credit Suisse employee, accusing the person of money laundering in relation to loans granted in Mozambique,” adding that the authorities also allege CS and its parent company and their successor companies “failed to prevent the offence as a result of organisational deficiencies.”

The prosecutor said proceedings against a second defendant, a former senior compliance leader and board member, were abandoned for procedural economy, with a separate conviction by the Federal Department of Finance currently under appeal. The presumption of innocence applies until final judgment, with sentencing proposals to be presented in court.

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