Switzerland has opened a probe related to $2 billion of loans to Mozambique that were organized by banks including Credit Suisse Group AG and VTB Bank PJSC, in a scandal that has already attracted the attention of prosecutors in the U.S.
The criminal probe started in February against “persons unknown” on suspicion of money laundering in connection with the credit, the Office of the Attorney General said on Friday. The target of the proceedings is not any specific person or entity, the office said.
The investigation follows requests for legal assistance from Mozambique, as well as reports of suspicious activity from the Swiss Money Laundering Reporting Office, according to the statement. Swiss newspaper NZZ reported the probe earlier on Friday.
For a QuickTake on the Mozambique loan scandal, click here.
Credit Suisse “is cooperating with all authorities investigating these matters,” a spokesman for the Swiss bank said.
The loans, which were granted to three state-owned Mozambican companies, are at the center of a scandal that has led to a sovereign default and an economic crisis. The debt was meant to fund a new coastal patrol force and develop a tuna fishing fleet for one of the world's poorest countries. But the fundraising would ultimately come to the attention of U.S. prosecutors who alleged that the contracts were a front for government officials and bankers to enrich themselves.
Andrew Pearse, a former Credit Suisse managing director, last July admitted taking millions of dollars in kickbacks and pleaded guilty to wire fraud in New York federal court. Detelina Subeva, a former vice president in the bank's global financing unit, pleaded guilty two months earlier to one count of conspiracy to launder funds.
The bank has insisted all along that it was deceived by rogue bankers and couldn't be held responsible for their “unlawful conduct” when it arranged the loans in early 2013. The Swiss bank said it carried out its usual due diligence before the transactions and was aware of the risk of bribery and corruption.
VTB has said an internal investigation found no evidence of wrongdoing or any improper payments and that it is cooperating with international investigations. In January, the Russian bank filed a suit against Mozambique in London over a loan guarantee related to the deal.
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