Swiss Federal Criminal Court Drops Proceedings Against Former Credit Suisse Executive Lara Warner

Switzerland’s Federal Criminal Court has terminated proceedings against former Credit Suisse executive Lara Warner in connection with allegations that she failed to report suspected money laundering tied to the Mozambique tuna bond scandal.

The court ruled on Tuesday that the case against Warner, who previously served as chief compliance officer at the collapsed Swiss bank before its takeover by UBS in 2023, had surpassed the applicable statute of limitations.

As a consequence of the ruling, a fine of 100,000 Swiss francs ($127,000) imposed on Warner last year by Switzerland’s finance ministry has now been revoked.

“I am relieved by this decision and grateful that this matter has finally been resolved,” Warner said, reiterating that she had denied accusations of failing to report suspected money laundering activities.

“I appreciate the support I have received throughout this process and look forward to putting this chapter behind me.”

Switzerland’s finance ministry stated that it was considering whether to appeal the ruling, though officials declined to provide additional comment.

The proceedings stemmed from the long-running Mozambique tuna bond scandal, which involved transactions between Mozambican state-owned companies and shipbuilder Privinvest. The projects, intended to support the country’s fishing industry and maritime security initiatives, were financed partly through loans and bonds arranged by Credit Suisse and backed by undisclosed guarantees issued by the Mozambican government in 2013 and 2014.

Hundreds of millions of dollars later disappeared, and when the hidden government debt became public in 2016, international donors including the International Monetary Fund temporarily suspended financial assistance to Mozambique. The revelations triggered a collapse in the country’s currency, debt defaults, and broader economic turmoil.

A separate criminal investigation accusing Warner of money laundering offences had already been dropped by Swiss federal prosecutors last year.

In another related development, a former Credit Suisse employee who reported directly to Warner was acquitted last week. Earlier in April, the court also discontinued separate proceedings involving UBS.

Warner, who held the position of Credit Suisse compliance chief from 2015 until 2021, had faced accusations that she failed to notify Switzerland’s Money Laundering Reporting Office regarding a suspicious transaction.

The allegations centered on a transfer made in March 2016 involving approximately $7.8 million sent from Mozambique’s finance ministry to a Credit Suisse account in Switzerland. Within days, nearly $7 million of those funds was transferred onward to the United Arab Emirates.

Authorities claimed the money was connected to loans issued to Mozambican state-owned enterprises and argued that the funds were of criminal origin, according to the court.

However, the court noted there was no indication of where the money transferred to the UAE had been located after 2017, adding that the Gulf state was regarded as a difficult jurisdiction for investigators to work with.

The court concluded that any obligation on the part of Credit Suisse to report the transaction would have expired at the beginning of 2017. As a result, the seven-year statute of limitations governing any alleged breach of reporting obligations expired at the start of 2024, bringing the case to a close.

By fLEXI tEAM