Thursday, October 29, 2020

Julius Baer employees face investigations over anti-money laundering failures


Switzerland’s financial watchdog will probe the actions of individuals at Julius Baer after it reprimanded the bank for ignoring money-laundering risks in payments linked to corruption in Venezuela and world soccer body FIFA.

FINMA Chief Executive Mark Branson said the regulator would look at the behaviour of individuals at the Swiss private bank, with employment bans among the possible punishments for those found to have breached regulations.

In a highly critical report last week, FINMA said there had been scores of failings at Switzerland’s third-largest listed bank, such as its acceptance of a 70 million Swiss franc ($71 million) transfer for a Venezuelan customer in 2014 despite knowing he was accused of corruption.

FINMA declined to comment on specific individuals or give a time-scale for how long its investigation may last.

- Advertisement -

“We will now address questions about the responsibility of individuals in a second step,” Branson told the Aargauer Zeitung newspaper in an interview on Wednesday.

“If we identify serious violations of supervisory law, let’s see if there are members of management who bear direct causal responsibility for these errors.”

Julius Baer declined to comment on the investigation.

The shortfalls in combating money laundering identified by FINMA happened between 2009 and 2018, largely during Boris Collardi’s tenure as chief executive. Collardi, who has since left to join non-listed Pictet, declined to comment.

- Advertisement -

Last week, FINMA told the bank to improve its controls and appointed an auditor to oversee the group. Still, it did not make use of its power to demand the return of profits linked to wrongdoing.

The regulator has no powers to fine or imprison people but can ban individuals from working in the Swiss financial sector.

Since being established 11 years ago, FINMA has banned 56 people, with the measure proving “effective, even preventive”, Branson said.

He added that such bans could be imposed “regardless of persons or the size of institutions”, adding: “We have already enforced them against CEOs, heads of the legal department, board members or members of management.”


Nigerian court declines to issue international arrest warrant for fugitive ex-Petroleum Minister in corruption case

The Abuja Division of the Federal High Court, on Wednesday, refused an application by the Economic and Financial Crimes Commission, EFCC, for an arrest...

South Korea’s former Vice Justice Minister sentenced to jail for bribery and sexual favors

Former Vice Justice Minister Kim Hak-eui, the figure at the center of one of Korea’s biggest political sex scandals, was placed under pretrial detention...

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Judge opposed dismissal of bribery charge against former Portage mayor Synder

A judge denied Thursday two motions to dismiss a soliciting bribes charge former Portage Mayor James Snyder will be retried on, according to court...

Greek ex-minister Tsochadzopoulos, wife sentenced for money laundering

Former minister Akis Tsochadzopoulos, his wife and his cousin were found guilty of money laundering by a criminal appeals court on Tuesday. Each was served...

Guatemala seeks arrest of ex-minister linked to a $16m cash discovery

Guatemalan prosecutors are seeking the arrest of the former communications minister for ex-President Jimmy Morales on money laundering charges after finding a connection to...

Former Columbus mayor Eisenga charged with bank fraud

A former Columbus mayor and businessman who was once at the center of a controversial bill aimed at reducing child support payments for wealthy...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks