The former head of risk and compliance at Credit Suisse was fined CHF100,000 for not reporting money laundering suspicions linked to the Mozambique financing scandal, which involved $2 billion in loans. Credit Suisse has faced substantial fines due to this scandal, while the accused denied the allegations.
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. He was penalized for failing to promptly report suspicions of money laundering related to the Mozambique financing scandal. Reports indicate that the individual was aware of suspicious activity but did not alert the Money Laundering Reporting Office in Switzerland (MROS).
The Mozambique case involved loans totaling $2 billion to state-owned companies intended to enhance the nation’s coastguard and develop a tuna fishing fleet. However, a significant portion of these funds was misappropriated. Credit Suisse has faced penalties totaling around half a billion US dollars in connection with the scandal. The accused’s attorney has refuted the allegations against him.
In summary, the former Credit Suisse manager’s lack of action in reporting money laundering suspicions has led to a significant financial penalty. The Mozambique financing scandal highlights serious misconduct involving substantial loans intended for developmental projects, which were diverted improperly. This case underscores the importance of compliance in financial institutions and the consequences of failing to act in accordance with regulatory obligations.
Original Source: www.swissinfo.ch
