On 1 December 2025, Swiss federal prosecutors filed a high-profile indictment connected to the controversial “Mozambique Debt Scandal.” Authorities charged a former Credit Suisse compliance officer with money laundering offences and accused the bank — now part of UBS after the 2023 takeover — of organisational shortcomings that failed to prevent suspicious fund transfers.
The case revolves around loans exceeding $2?billion that Credit Suisse arranged in 2013 for three state-owned Mozambican companies, ostensibly to support development of the country’s tuna fishing industry. A portion of the proceeds — including $7.9?million transferred from Mozambique’s Ministry of Economy and Finance to a Swiss account — was later diverted to accounts in the United Arab Emirates under circumstances that prosecutors allege suggested a criminal origin.
Swiss authorities claim the compliance officer recognised multiple red flags indicating the funds might be illicit but chose not to file a report with the Money Laundering Reporting Office Switzerland (MROS) at the time. Instead, the recommendation was simply to terminate the relationship — a move prosecutors argue facilitated the transfer of suspicious funds abroad. The bank did not submit an official AML report until 2019, following U.S. law enforcement action.
The indictment alleges both personal and corporate liability, charging the individual under Swiss criminal code and accusing Credit Suisse (and UBS) of failing to implement adequate organisational measures to prevent the offence. UBS has publicly rejected the allegations and stated it will defend itself vigorously.
Key AML takeaways:
- Organisational deficiencies, not just individual misconduct, can trigger criminal AML charges.
- Failure to escalate and report suspicious transactions promptly can lead to prosecution under Swiss AML law.
- Legacy compliance failures may have legal consequences even after mergers or corporate restructuring.