Swiss Bank Freezes Angolan Money

Geneva's prosecutor is pursuing an Angolan businessman suspected of money laundering. Banque Syz has frozen hundreds of millions as a result of the investigation.

The Genevan wealth manager saw more than 1.1 billion Swiss francs ($1.2 billion) frozen after it was caught up in a Swiss criminal investigation related to Angola and money laundering, Swiss daily «Tribune de Genève» (behind paywall, in French) reported. A spokesman for the family-controlled bank didn't comment.

The investigation was first revealed by «Gotham City» (behind paywall, in French), which didn't report the name of the bank. Investigators are looking at Carlos Manuel de São Vicente, former CEO of AAA Seguros, which insured oil sector activity in Angola, according to the Swiss investigative portal.

Via RBC To Banque Syz

Syz came to hold funds for Carlos Manuel when it acquired the Swiss activities of Royal Bank of Canada, or RBS, five years ago. Syz, which isn't being investigated, sparked the investigation after raising alarm with Swiss money laundering officials at MROS.

Specifically, the bank had transferred $213 million from AAA Seguros to an account maintained by Carlos Manuel's holding company, which was in turn transferred to his personal account. Dissatisfied with the maintenance of his accounts, Carlos Manuel reportedly wanted to break off ties to Syz, ordering his money sent to Singapore, according to court documents.

Trouble Client For Free

Meanwhile, Geneva's prosecutor opened an investigation into suspected money laundering, blocking funds suspected to be tied to Carlos Manuel and associates. Three months later, Carlos Manuel was charged criminally in Geneva; his lawyer says he contests the charges.

Carlos Manuel maintains that a portion of the funds represents repayment of loans made to the company. The Angolan firm is apparently not pursuing charges, which would in turn make the accusation of money laundering in Switzerland difficult to back up. Carlos Manuel unsuccessfully appealed the blocking of accounts held by him and family members at Syz.

Syz knew of a dicey client relationship when it acquired RBS Switzerland, and the accounts and funds weren't part of the valuation of the acquisition, a source familiar with the matter told finews.com. In short, Syz got the troublesome client for free.