Switzerland’s financial market regulator FINMA said Tuesday it had seized 12.7 million Swiss francs ($15 million) from private bank Mirabaud & Cie for violating financial market law and failing to meet its money laundering obligations.
FINMA said Geneva-based Mirabaud failed to conduct adequate checks on client relationships and transactions related to a now-deceased businessman accused of tax evasion. FINMA did not identify the man in question or say who made the allegations.
In a statement, FINMA said it had opened three proceedings against individuals, without giving details. The authority did not respond to requests for further information on the case.
The supervisory authority said that from 2010 onwards, Mirabaud maintained business relationships with companies and financial structures that could be directly or indirectly linked to the businessman.
Mirabaud managed up to $1.7 billion in assets “in the context” of these relationships, which sometimes represented nearly a tenth of its assets under management, FINMA said.
According to FINMA, Mirabaud must review and, if necessary, redocument relevant transactions presenting increased risks from 2018 to 2022 and create incentives in its remuneration policy.
“Finally, FINMA confiscates 12.7 million Swiss francs of illegally generated profits.
The regulator said it had closed the deal in 2023 and that Mirabaud had tried to keep the matter private, which a bank spokesman confirmed. A top Swiss court has now ruled the case can be made public, FINMA said.
Mirabaud said she had cooperated fully to help FINMA resolve the case, which she said “puts the past to rest.”
“Over the past few years, the bank has implemented operational, organizational and personnel measures to improve its compliance and risk management processes and is committed to maintaining the highest standards in this regard,” Mirabaud said.
(1 dollar = 0.8444 Swiss francs)
