FCA Declares £147m Fine on Credit Suisse for Due Diligence Failings

BREAKING: FCA fines Credit Suisse over £147m for “due diligence failings” https://t.co/owPU31r3oT pic.twitter.com/NBtoJigurW

— City A.M. (@CityAM) October 19, 2021

The long-overdue “tuna bonds” case has trapped Credit Suisse and other involved entities in several civil, regulatory, and criminal cases. The detailed investigation found that payments of up to $53 million were made to three of Credit Suisse’s employees as bribes. 

Additionally, significant amounts of the loan were swindled and were even used for purchasing military equipment. The bank was found to have breached Principle 3 of the FCA’s Principles for Businesses due to insufficient due diligence while arranging loans for the Republic of Mozambique.

Credit Suisse also violated Principle 2 by failing to conduct business with care, skill, and diligence. The FCA pointed out the lack of reporting to the “relevant authorities” during the final transaction period in 2016 when the bank had considerable evidence “to ground a reasonable suspicion that [an earlier loan] may have been tainted, either by corruption or other financial crime”.

The FCA fine fulfilled multi-jurisdictional obligations that involve the US Department of Justice as well as the US Securities and Exchange Commission along with the Swiss Financial Market Supervisory Authority.

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