Skip to content
  • Home
  • About
  • Contact
  • Page
  • ​Master SEO Tactics
  • Top 9 Finance News Websites Ranking
wikifx

wikifx

  • Home
  • About
  • Contact
  • Page
  • ​Master SEO Tactics
  • Top 9 Finance News Websites Ranking
  • Toggle search form
  • Bridget Messer to step down as IG Group exec director forex news
  • Binary Options fraud leads to 15 arrests in Germany-Israel police action forex news
  • FX week in review: Results from XTB, ADSS, Robinhood, Plus500; Bundesliga sponsor deal forex news
  • Euronext unveils new strategic plan forex news
  • Securities Commission Malaysia Updates Investor Warning List! forex news
  • TraditionData hires for Bus Dev from Fenics, TP ICAP forex news
  • SC Ventures launches fintech letsbloom forex news
  • AximTrade Review 2022: Pros and Cons forex news

Credit Suisse hit with $475M US and UK fines for misleading investors in Mozambique affair

Posted on 2021-10-20 By admin No Comments on Credit Suisse hit with $475M US and UK fines for misleading investors in Mozambique affair

US and UK financial regulators have announced that banking and brokerage giant Credit Suisse Group AG (NYSE:CS) has agreed to pay nearly $475 million to U.S. ($275M) and UK ($200M) authorities, for fraudulently misleading investors and violating the Foreign Corrupt Practices Act (FCPA) in a scheme involving two bond offerings and a syndicated loan that raised funds on behalf of state-owned entities in Mozambique.

According to the regulators, these transactions that raised over $1 billion were used to perpetrate a hidden debt scheme, pay kickbacks to now-indicted former Credit Suisse investment bankers along with their intermediaries, and bribe corrupt Mozambique government officials. The SEC’s order finds that the offering materials created and distributed to investors by Credit Suisse hid the underlying corruption and falsely disclosed that the proceeds would help develop Mozambique’s tuna fishing industry. Credit Suisse failed to disclose the full extent and nature of Mozambique’s indebtedness and the risk of default arising from these transactions.

The SEC’s order also finds that the scheme resulted from Credit Suisse’s deficient internal accounting controls, which failed to properly address significant and known risks concerning bribery.

“When it comes to cross-border securities law violations, the SEC will continue to work collaboratively with overseas law enforcement and regulatory agencies to fulfill its Enforcement mission,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “Our action against Credit Suisse today is yet another example of our close and successful coordination with counterparts in Europe and Asia.”

“Credit Suisse provided investors with incomplete and misleading disclosures despite being uniquely positioned to understand the full extent of Mozambique’s mounting debt and serious risk of default based on its prior lending arrangements,” said Anita B. Bandy, Associate Director of the SEC’s Division of Enforcement. “The massive offering fraud was also a consequence of the bank’s significant lapses in internal accounting controls and repeated failure to respond to corruption risks.”

A London-based subsidiary of Russian bank VTB separately agreed to pay more than $6 million to settle SEC charges related to its role in misleading investors in a second 2016 bond offering. According to the SEC’s order, the second offering as structured by VTB Capital and Credit Suisse allowed investors to exchange their notes in an earlier bond offering for new sovereign bonds issued directly by the government of Mozambique. But the SEC found that the offering materials distributed and marketed by Credit Suisse and VTB Capital failed to disclose the true nature of Mozambique’s debt and the high risk of default on the bonds. The offering materials further failed to disclose Credit Suisse’s discovery that significant funds from the earlier offering had been diverted away from the intended use of proceeds that was disclosed to investors. Mozambique later defaulted on the financings after the full extent of “secret debt” was revealed.

The US SEC’s order against Credit Suisse finds that it violated antifraud provisions as well as internal accounting controls and books and records provisions of the federal securities laws.

Credit Suisse agreed to pay disgorgement and interest totaling more than $34 million and a penalty of $65 million to the SEC. As part of coordinated resolutions, the U.S. Department of Justice imposed a $247 million criminal fine, with Credit Suisse paying, after crediting, $175 million, and Credit Suisse also agreed to pay over $200 million in a penalty as part of a settled action with the United Kingdom’s Financial Conduct Authority.

VTB Capital consented to an SEC order finding that it violated negligence-based antifraud provisions of the federal securities laws. Without admitting or denying the findings, VTB Capital agreed to pay over $2.4 million in disgorgement and interest along with a $4 million penalty.

forex news Tags:forex-news

Post navigation

Previous Post: Interactive Brokers reports drop in revenues in Q3 2021
Next Post: Sir Michael Snyder to step down as Director of Metro Bank

Related Posts

  • Barclays secures Australian license to operate as foreign ADI forex news
  • eToro registers steep rise in trading income in Q3 2021 forex news
  • State Street to add new tools and functionalities to Insights platform forex news
  • Exclusive: FXCM alum Adam Dougall hired as CEO of GKPro forex news
  • CFTC secures entries of default in lawsuit against ROFX forex news
  • SEC charges Integral Financial with fraudulent sales of high-risk securities forex news

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • EUR/USD Holds Near 1.05 as Fed, ECB Policies Shape Market Sentiment
  • Gold Prices Hold Steady Amid Global Economic Uncertainty
  • Australian Dollar: How RBA Policies, Commodity Prices, and Global Tensions Are Shaping the AUD’s Market Performance
  • EUR/USD: Understanding the Currency Pair’s Trends
  • USD Under Pressure: Navigating Economic Data and Global Uncertainties

TAG

Axiory Review 2022 B2B B2Broker News Basic Forex Knowledge broker brokers brokers in the UK Brokersview Broker tools CFDs coin News cryptocurrency Cryptocurrency News Crypto News dogecoin FCA news finance forex forex-news Forex Broker Forex Brokers Forex Demo Account Forex market forex news forex scams forex time Forex trading fx fxtrader fxtrading Global Forex Gold Analysis HotForex InstaForex LiteForex Review 2022 markets work MT4 MT5 news OctaFX Review Samtrade FX South Africa trade Forex traders Trading Forex
  • SNB confirms Chairman Thomas Jordan underwent medical procedure forex news
  • Vantage FX CMO David Bily leaves to focus full-time on Moneta Markets forex news
  • Playtech share price dives 26% after Eddie Jordan group withdraws forex news
  • CFTC case against binary options scam Yukom keeps dragging forex news
  • Tradefeedr adds PIMCO alum Michal Marcek to its Advisory Group forex news
  • CMC Markets issues 700,000 new shares under Management Equity Plan forex news
  • Bitfinex doubles Zug server capacity amidst surging institutional crypto demand forex news
  • MOEX Moscow Exchange suspends all market transactions forex news

Copyright © 2025 wikifx.

Powered by PressBook News WordPress theme