FINMA sanctions Bank Mirabaud for money laundering violations
Published: Tuesday, Sep 17th 2024, 09:50
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The Geneva-based private bank Mirabaud has been sanctioned by the Swiss Financial Market Supervisory Authority Finma for breaching its obligations in the fight against money laundering. Finma has now confiscated CHF 12.7 million in "unlawfully generated" profits and opened proceedings against three individuals. It is also temporarily restricting the acceptance of new clients.
The misconduct is linked to a businessman who has since died and was accused of tax evasion, as detailed in a Finma press release issued on Tuesday. Since 2010, Bank Mirabaud had maintained several business relationships with companies and "complex structures" that were directly or indirectly linked to the aforementioned businessman. The bank managed up to 1.7 billion US dollars in assets as part of these business relationships, which at times accounted for almost ten percent of the bank's total assets under management.
According to FINMA, the Geneva-based bank failed to properly verify and document the economic justification and economic background of numerous transactions. This was despite indications of increased money laundering risks and specific warnings since 2018. Overall, Bank Mirabaud did not have an adequate organization and sufficient risk management in place to monitor these business relationships.
In addition to the confiscation of the unlawfully generated profit of CHF 12.7 million in favor of the state treasury, FINMA has ordered a series of further measures. In particular, the bank must further adapt its anti-money laundering measures and expand its control system. Until the measures have been fully implemented, Mirabaud is also prohibited from taking on additional clients with increased money laundering risks. Finma has now appointed an audit officer.
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