Swiss Bank Chided For Alleged FIFA, Venezuela Fraud
Swiss bank Julius Baer is being scolded by Switzerland’s
financial watchdog for failing to notice money-laundering threats connected to
deception in Venezuela and FIFA, the world soccer body, Reuters reported
Thursday (Feb. 20).
The Swiss Financial Market Supervisory Authority (FINMA)
released a negative report stating Switzerland’s third-largest listed bank had
numerous mishaps. It pointed to an incident in which the bank accepted a 70
million Swiss franc ($71 million) transfer in 2014 for a Venezuelan customer
known for corruption.
The regulator’s report coincides with Switzerland’s aim to
change its image as a non-transparent and secretive financial center. Due to
demands from global tax officials, Switzerland was asked to be more
transparent, although some authorities have stated that the concessions have
helped wealthy countries over poor ones.
FINMA put an auditor in charge of overseeing Julius Baer and
told the bank to improve its controls. The bank didn’t face a financial penalty
because FINMA failed to mandate that ill-gotten profits go back to those
wronged.
The watchdog said it found “systematic failings and
management inaction” regarding money-laundering issues. Of the roughly 150
transactions examined, irregularities were found from 2009 to 2018.
“We accept FINMA’s findings and regret the shortcomings
identified in our business with Latin American clients,” said Romeo Lacher,
chairperson of the bank. “This is not compatible with the risk culture that we
are striving to achieve.”
The issues at hand are connected to corruption linked to
Venezuelan oil company PDVSA and global soccer governing body FIFA, the
regulator said.
FIFA“has been embroiled in a bribery scandal that led to
former President Joseph Blatter and former Vice President Michel Platini being
banned from soccer in 2015 over illicit payments,” according to Reuters.
The Office of the Attorney General of Switzerland (OAG) said
Thursday that it had filed an indictment against former FIFA Secretary General
Jerome Valcke, who it has charged with accepting bribes.
In other Julius Baer news, the bank appointed former Goldman
Sachs Singapore CEO Jason Moo as private banking head for Southeast Asia and
branch manager for Singapore in November.
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