Swiss Prosecutors Push Mozambique Loan Laundering Case Against Credit Suisse Toward Trial

Credit Suisse is again under pressure as Swiss prosecutors move forward with an indictment focused on money flows tied to the Mozambique loan arrangements, alleging that millions connected to the 2013 state-guaranteed financing entered accounts at the former bank and were then sent abroad despite red flags pointing to potential criminal origins. The case lays out a progression of internal decisions that, according to prosecutors, allowed questionable transfers to proceed without a timely alert to the Money Laundering Reporting Office of Switzerland. The document also scrutinises the bank’s internal reviews and the shortcomings attributed to them, marking the transition of the matter into the judicial arena while authorities underline that all individuals and companies involved remain presumed innocent.

Prosecutors outline how transactions linked to the Mozambican, state-guaranteed loans—arranged in 2013 for three public entities and later central to the Mozambique Debt Scandal—raised increasingly serious concerns. By 2016, the Office of the Attorney General of Switzerland had begun receiving information suggesting that fees and transfers associated with the loans might stem from wrongdoing in Mozambique. The alarm intensified when a foreign firm holding accounts at Credit Suisse received about USD 7.86 million from Mozambique’s Ministry of Economy and Finance. Investigators describe the payment as a running fee tied to supposed services connected to the financing, and the indictment says the money was “obtained or facilitated through misconduct committed in Mozambique,” noting alleged bribery of officials and violations of obligations linked to publicly guaranteed loans. Soon after the credit, USD 7 million was sent to the United Arab Emirates, prompting internal queries as the bank evaluated whether the payment reflected “unlawful conduct connected to the loan transactions.”

Prosecutors argue that the entire commercial relationship displayed a series of unmistakable warning signals: the corporate structure of the account holder, its involvement in previous loan-related activity, and the source of the funds. The indictment claims that despite these red flags, the internal review lacked the level of diligence required by Swiss anti-money laundering standards. Instead of filing a report with the Money Laundering Reporting Office, the bank opted to terminate the relationship—an action that, according to prosecutors, enabled remaining suspicious funds to be transferred abroad later in 2016.

Central to the indictment is the conduct of a compliance officer accused of playing a decisive role in the internal review following the transfer of the USD 7 million. She is charged with money laundering under Article 305bis of the Swiss Criminal Code. Prosecutors say she was aware of indicators suggesting potential criminal origins, including the broader context of the Mozambican transactions, internal risk assessments, and the unusual nature of the payments. The indictment alleges that she advised against submitting a report to the Swiss reporting office and instead recommended closing the account. According to the charges, this approach—combined with investigative steps deemed insufficient—allowed roughly USD 609,000 and CHF 28,000 still held in the account to be moved abroad after the initial transfer. Prosecutors argue that this facilitated the circulation of funds suspected to derive from criminal activity, forming the basis for the money laundering allegation. They emphasize her duty under Swiss law to ensure adequate due diligence and compliance with internal anti-financial crime directives, and they describe the failure to submit a suspicious transaction report as a breach of reporting obligations.

Beyond the charges against the individual officer, prosecutors have also indicted Credit Suisse, its former parent, and successor entities UBS SA and UBS Group SA. Under Article 102 of the Swiss Criminal Code, companies may face criminal liability when organisational shortcomings enable wrongdoing, and the indictment claims the financial group failed to implement necessary structures to prevent the alleged money laundering. According to prosecutors, risk management and compliance frameworks in 2016 were marked by significant weaknesses that affected how the Mozambique-linked enquiries were handled. The delayed suspicious transaction report—eventually filed in 2019 after the U.S. Department of Justice publicly confirmed its own proceedings—was highlighted as evidence of a system that should have escalated concerns three years earlier. The organisational charges draw on findings from a second internal investigation launched in 2023, which itself built on proceedings opened in 2020 involving natural persons suspected of money laundering and complicity in bribery of foreign officials. The indictment stresses that systemic vulnerabilities, not individual intent, allowed funds suspected of illicit origin to pass through the bank undetected. With the corruption allegations surrounding the Mozambique Debt Scandal and the involvement of publicly guaranteed loans, the seriousness of the alleged oversight failures takes on added weight. Prosecutors also point out that bringing UBS SA and UBS Group SA into the case ensures accountability despite the 2023 takeover.

Proceedings against a second defendant—who held supervisory responsibilities at the relevant time—have been discontinued because that individual was already convicted in March 2025 by the Federal Department of Finance for violations of reporting duties under the Anti-Money Laundering Act, a decision now under appeal before the Federal Criminal Court. Prosecutors concluded that maintaining a parallel criminal case would not contribute to procedural efficiency. The matter will now move forward with the remaining defendants as the Federal Criminal Court oversees forthcoming stages such as hearings, updates, and the presentation of sentencing positions. Consistent with Swiss procedure, the Office of the Attorney General will outline its arguments at the appropriate time.

The case underscores how lapses in governance and delayed reporting can allow funds tied to corruption allegations to cross borders, illustrating the risks that emerge when internal indicators are not escalated promptly. As the indictment heads into judicial review, prosecutors will present their evidence while defence teams put forward rebuttals, and all defendants retain full procedural rights alongside the presumption of innocence. The trajectory of the Mozambique-linked transfers highlights how investigative gaps and organisational deficiencies can create pathways for suspect proceeds to move through the financial system.

By fLEXI tEAM