5/17/2023 0 Comments Requirements manager credit suisse![]() Instead, the bank terminated the business relationship and declared the adviser to be an undesirable client. Although the bank was not able to dispel the suspicions, it did not file a suspicious activity report with MROS. Questions concerning the background to the payment remained unanswered, despite the bank’s investigations. Breach of reporting obligationsĪ suspicious payment of around USD 8 million was also made to an adviser of Mozambique through Credit Suisse in the context of this case. Overall FINMA concludes that the Group’s risk management in connection with the Mozambique loans was seriously deficient. The parent company ultimately still approved the restructuring, although there were various warning signs and unanswered questions, which could not be plausibly clarified. Particularly before the EMATUM bonds were converted in 2016, the parent company had information indicating that funds from the loans running to several hundred million may have been misused. Indications that the funds were being misused The consequence of this one-sided focus was that the British subsidiaries of Credit Suisse decided on their own to grant the original loan in 2013, without the parent company intervening and thereby fulfilling its duty within the context of Group-wide risk management. In the present case, the bank focused instead primarily on the financial risk, which was limited because of the syndication and issue of bonds. There are high reputational risks associated with large loans to financially weak or corruption-prone countries. Shortcomings in Group-wide risk management Credit Suisse UK carried out the restructuring of these debts. In 2016, due to payment difficulties on the part of EMATUM, these loans were swapped for direct bonds issued by the state of Mozambique. It structured the loan to EMATUM and placed the corresponding bonds with investors. Credit Suisse UK shared the loan to ProIndicus with other syndicate banks. These loans, which made up almost 6% of Mozambique’s gross domestic product, were primarily intended to fund maritime security vessels and a tuna fleet. (ProIndicus) and Empresa Moçambicana de Atum S.A. In 2013, the British subsidiaries of the Credit Suisse Group (Credit Suisse UK) arranged two loans guaranteed by the state of Mozambique totalling one billion US dollars to two Mozambican state-owned companies, ProIndicus S.A. Both authorities have also investigated and closed this case, as has the US Department of Justice (DOJ). In the course of the proceedings FINMA coordinated closely with the local partner authority, the British Financial Conduct Authority (FCA) and with the American Securities and Exchange Commission (SEC). As part of these, it clarified the role of the parent company in connection with two significant loans granted by the British subsidiaries of Credit Suisse to Mozambican state-owned companies. FINMA is concluding a supervisory investigation and subsequent enforcement proceedings against the Credit Suisse Group.
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