Finma investigates money laundering case at Julius Bär
Wednesday, 10.06.2020
news-single-imgcaption" style="width:240px">According to the Zurich daily, Finma is investigating whether Julius Bär has violated anti-money laundering provisions by providing service to his client. (Keystone)
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Julius Bär is probably again in the crosshairs of the Federal Financial Market Supervisory Authority (Finma). In its Wednesday edition, the Neue Zürcher Zeitung (NZZ) claims that the supervisory body of the banks has opened a detailed investigation (enforcement) procedure against the Zurich private establishment in a case linked to an Argentine entrepreneur.
According to the Zurich daily, Finma is investigating whether Julius Bär has violated anti-money laundering provisions by providing service to his client. The bank confirmed the opening of an enforcement procedure against him.
The South American businessman would have carried out between 2007 and 2016 via front companies transactions on the capital market for more than 50 million francs, channeling the funds through several accounts at Julius Bär.
The irregularities were reported by employees of the bank in 2016. The bank conducted an internal audit which led to the closure of the accounts, but did not inform the Communication Office regarding money laundering. Furthermore, the competent committee of the board of directors received only “general information” on the case.
The gendarme banker had already pinned Julius Bär last February for “serious shortcomings” in the fight against money laundering, in the context of suspected corruption in connection with the state oil group Petróleos de Venezuela (PDVSA) and with the International Federation of Association Football (FIFA).
Finma then urged the bank to adopt effective measures to fulfill its legal obligations in the fight against money laundering and to quickly implement the initiatives already under way. Pending the reestablishment of “legal order”, Julius Bär was forbidden to make any major acquisition.
At the time, the Zurich private bank had assured that, under the leadership of its new boss Philipp Rickenbacher, in office since the summer of 2019, already massively strengthened risk management and regulatory compliance. Finma’s suspicions relate to events dating back to the Collardi years, passed in 2017 to the Geneva banking group Pictet. (awp)
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