Credit Suisse Executive Fined Over Delayed Money Laundering Report

The former head of risk and compliance at Credit Suisse has been fined CHF100,000 for not reporting money laundering suspicions tied to the Mozambique scandal, where funds meant for state-owned companies were misappropriated. Credit Suisse has incurred substantial fines related to this case.

The Swiss Federal Department of Finance has imposed a fine of CHF100,000 (approximately $114,000) on a former executive at Credit Suisse for neglecting to report suspicions of money laundering associated with the Mozambique financing scandal. This penalty is indicative of the ongoing accountability measures in response to significant financial misconduct.

The accused individual, who previously held the position of head of risk and compliance at Credit Suisse, failed to notify the Money Laundering Reporting Office in Switzerland (MROS) despite being aware of suspicious activities. Reports from German-speaking media indicate that the foreign ministry outlined this in their penal order.

The Mozambique affair centers around loans exceeding $2 billion to state-owned companies in Mozambique, intended for enhancing the coastguard and establishing a tuna fishing fleet. Unfortunately, a significant portion of these funds ended up being misappropriated.

In connection with this scandal, Credit Suisse has already agreed to pay fines totaling around half a billion US dollars to U.S. authorities. Meanwhile, the attorney representing the former manager has rejected the allegations of wrongdoing against him, highlighting the complexities associated with the case.

In summary, the former head of risk and compliance at Credit Suisse has been fined for failing to report suspected money laundering in the Mozambique scandal. This case highlights the critical nature of compliance in financial institutions, particularly in preventing the misappropriation of large sums. The ongoing financial repercussions for Credit Suisse illustrate the consequences of inadequate oversight and reporting mechanisms in the banking sector.

Original Source: www.swissinfo.ch