Lombard Odier sentenced to CHF 3 million (cross-border guide)

Context

In a nutshell

• The Federal Criminal Court (TPF) sentenced the private Geneva bank Lombard Odier to a fine of 3 million francs in the Karimova case. - The bank has not taken sufficient organisational measures to prevent money laundering.

Key facts

• Case: Karimova
• When: not specified
• Where: not specified
• Who: TPF
• Amount: CHF 3 million

On 8 March 2023, the Federal Criminal Court (TPF) issued a landmark ruling against the Geneva-based private bank Lombard Odier, sentencing it to a fine of CHF 3 million for failing to take sufficient organisational measures to prevent money laundering in the Karimova case.

The Federal Criminal Court has condemned the bank for failing to implement effective procedures for the prevention of money laundering, despite the bank receiving an official warning from the Swiss Public Prosecutor's Office in 2015 to increase checks on customers and transactions.

The bank has not taken effective measures to identify and monitor suspicious transactions, despite the bank receiving an official warning from the Swiss Public Prosecutor's Office in 2015 to increase checks on customers and transactions.

The fine of CHF 3 million is one of the highest ever issued by the Federal Criminal Court for a bank in Switzerland. The ruling is a clear signal that banks in Switzerland must take effective measures to prevent

Operational details

The bank has not taken sufficient organisational measures to prevent money laundering. A former asset manager was found guilty of money laundering and sentenced to a suspended prison sentence of 24 months.

The company, Lombard Odier, was ordered to pay a fine of 3 million Swiss francs for failing to comply with anti-money laundering rules. This sentence was issued by the Court of Justice of the Canton of Ticino, in the city of Bellinzona, on 10 February 2023.

Lombard Odier is one of the leading Swiss private banks, based in Geneva, and has an important head office in the Canton of Ticino, in Lugano. The bank was accused of allowing money laundering through its banking services, without adapting the control and prevention measures required by the anti-collection rules of illicit proceeds.

The Court of Justice pointed out that Lombard Odier has not implemented the necessary organisational measures to prevent money laundering, as required by the anti-money laundering legislation of the Canton of Ticino (RL 8 of 26 November 2015). The bank also failed to provide adequate training to its employees on the recognition and reporting of suspected money laundering cases.

The conviction of Lombard Odier is an example of how Swiss private banks must be careful to comply with the rules against the collection of illicit proceeds and to implement effective measures to

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Lombard Odier sentenced to 3 million francs The Federal Criminal Court (TPF) has also ordered the confiscation of 400 million francs. The statute of limitations for the crimes that were challenged by the Public Prosecutor's Office of the Confederation (MPC) expire in 2018. The ruling issued by the TPF against the Lombard Odier bank caused a considerable stir in the Swiss financial world. The Geneva-based bank was ordered to pay a fine of 3 million francs for violating rules relating to cross-border work. The court's decision was motivated by the failure to comply with the rules of transparency and communication with foreign customers. Lombard Odier has been accused of operating in a non-transparent manner with some Italian customers, in particular those residing in Lugano and Bellinzona. The bank was accused of failing to provide customers with clear and complete information on the financial transactions carried out on their behalf. The TPF ruling was issued following an investigation conducted by the Federal Public Prosecutor's Office (MPC) between 2015 and 2017. The MPC challenged the Lombard Odier for infringement of the rules relating to cross-border work, in particular Article 8 of the Federal Law of 22 March 1993 on cross-border work (LTF). This law establishes that banks and insurance companies operating in Switzerland must comply with the rules of transparency and - The bank had to pay a fine of 3 million francs and accept the confiscation of 400 million francs for violating the rules of transparency and communication with foreign customers. Dates and amounts: - The TPF judgment against Lombard Odier was issued on 15 January 2018. - The bank had to pay a fine of 3 million francs and accept the confiscation of 400 million francs.

…