The case

In 2024 Swiss financial market regulator FINMA confiscated CHF 12.7 million (USD 15 million) from private bank Mirabaud & Cie over violations of financial market law and breaches of its money-laundering obligations.

In a statement, FINMA also said it had opened three proceedings against individuals, without giving details.

Source: Finma & Swiss Press

The commentary

According to FINMA Bank Mirabaud had not made sufficient checks on customer relationships and transactions linked to a now deceased businessman who was accused of tax evasion. Mirabaud had not established the identity of the BO as deemed correct.

As a direct consequence of the regulatory investigation, several individuals were held responsible. Yves Mirabaud, long-standing senior partner and Chairman of the Compliance Committee in 2010, was fined CHF 250,000. He was accused of informing the relevant authorities too late and authorising the opening of accounts for a concealment scheme. A former compliance officer received a fine of CHF 25,000, while the client advisor responsible was fined CHF 250,000.

One particularly piquant detail in this case concerns the trustee at the time – an Australian lawyer – who is alleged to have pocketed USD 20 million from the trusts. This incident shook up the entire structure and triggered further investigations.

In response to the allegations, the bank has been taking extensive measures to strengthen its compliance management as well as its risk management processes, which include reorganisation, the adjustment of the anti-money laundering policy as well as the review and subsequent documentation of relevant transactions with increased risks from 2018 to 2022.

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