Former Credit Suisse banker pleads guilty on Mozambique bribes

Former Credit Suisse banker pleads guilty on Mozambique bribes

This case illustrates the dangers of banks dealing with Politically Exposed Persons in countries deemed to pose a high financial crime risk. Another well publicised case in this area relates to the Malaysian 1MDB case currently subject to multiple legal actions for recovery of up to US$ 4.5bn according to the US DOJ. The US has recently agreed to return a total of almost $200m to Malaysia, including money linked to the film company that produced The Wolf of Wall Street. Without commenting on these specific cases still being concluded, lessons need to be learnt about the potential for breaches of multiple regulations including Anti Bribery & Corruption, Criminal Finance Act (2017) as well as the The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Failure to ensure that all new business is subject to adequate AML checks covering all possible financial crime risks, especially where PEPs are involved can result in serious problems for years to come. Senior management should consider these risks when considering the merits of attractive financial benefits in the short term.

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Ayaz Siddiqui, 22nd May 2019

GRT Consulting

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