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Credit Suisse pays SEC $99 million to resolve ‘Mozambique kickback’ FCPA offenses

Credit Suisse Group AG agreed Tuesday to pay the SEC $99 million to resolve violations of the internal controls and books and records provisions of the Foreign Corrupt Practices Act, as well as other securities laws.

The SEC said Credit Suisse paid kickbacks of about $50 million in connection with two bond offerings and a syndicated loan that raised funds on behalf of state-owned entities in Mozambique.

The SEC’s internal administrative order included a penalty of $65 million, disgorgement of $26.2 million and prejudgment interest of $7.8 million.

The DOJ charged Credit Suisse with a criminal count of conspiracy to commit wire fraud but not FCPA offenses. The bank agreed to pay a criminal fine of about $75 million after credit for amounts paid to the SEC and other agencies, and entered into a three-year deferred prosecution agreement.

Zurich-based Credit Suisse entered into a related settlement Tuesday with the UK’s Financial Conduct Authority. The FCA fined Credit Suisse £147 million ($202 million) “for serious financial crime due diligence failings related to loans worth over $1.3 billion, which the bank arranged for the Republic of Mozambique.”

Credit Suisse also agreed with the FCA to forgive $200 million of debt owed by Mozambique for the “tainted loans.”

In June 2018, Credit Suisse paid the DOJ a $47 million penalty to end an FCPA investigation into hiring practices in Asia.

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