The Swiss Financial Market Supervisory Authority FINMA has found private bank Mirabaud & Cie to breach its anti-money laundering (AML) obligations and “seriously violated” financial market law, following enforcement proceedings that had begun in June 2021.
The regulator stated that the bank failed to review and document sufficiently the economic background of client relationships and transactions and has forbidden the bank from accepting any new clients with increased money-laundering risks “until compliance with the law has been restored”.
Additionally, FINMA has confiscated CHF 12.7 million ($15M) of “unlawfully generated profits” and opened three proceedings against individuals. The regulator had opened its investigation following indications of misconduct concerning a complex client structure alleged to have been connected with a businessman accused of tax evasion who has since died.
Since 2016, Swiss financial intermediaries have been required to clarify the background and purpose of a transaction or business relationship if there are indications that assets could originate from a crime or qualified tax avoidance. FINMA said Mirabaud maintained multiple business relationships after 2010 with companies and complex structures that could have been directly or indirectly connected with the aforementioned businessman, managing assets of up to $1.7 billion within these business relationships.
“Mirabaud altogether did not have adequate organisation and sufficient risk management for monitoring these business relationships,” the Swiss regulator said in a press statement. “The
bank therefore seriously violated provisions of financial market law concerning adequate organisation (governance), risk management and money laundering prevention over a prolonged period.”
FINMA further stated that the bank cooperated during the proceedings and took relevant measures to rectify the shortcomings noted during the proceedings. Alongside a wider reorganisation, Mirabaud has also taken steps to strengthen its AML measures, risk management, the entire internal control system and governance – which the regulator deems “suitable for restoring compliance with the law”.
