Swiss regulator seizes $15 million from private bank Mirabaud linked to massive money laundering and tax evasion case!

Swiss regulator FINMA has seized $15 million from Geneva-based private bank Mirabaud & Cie for serious violations of financial markets laws and anti-money laundering obligations.

The bank failed to properly vet a deceased businessman accused of tax evasion and managed up to $1.7 billion in related assets. Despite Mirabaud's attempts to keep the case secret, the Swiss court made it public.

Key points:

The Swiss financial market regulator FINMA found that Mirabaud & Cie breached its anti-money laundering obligations and seriously breached financial market legislation.

The bank managed up to US$1.7 billion in assets for the late businessman, identified by Hubbis as US citizen Robert Brockman.

FINMA confiscated CHF 12.7 million in illegal profits to the Swiss Federal Treasury and opened three legal proceedings against individuals.

Until the prescribed measures are fully implemented and compliance with the law is restored, FINMA prohibited the bank from accepting new clients with an increased risk of money laundering.

Brief description:

Swiss financial regulator FINMA has imposed a significant fine on Geneva-based private bank Mirabaud & Cie, confiscating CHF 12.7 million in illicit profits. The case relates to Mirabaud's business relationships with companies and financial entities associated with the late American businessman Robert Brockman. In October 2020, Brockman was indicted in the United States on 39 counts of tax evasion, fraud, money laundering and other crimes. Brockman died in August 2022 at the age of 81 without receiving a trial. He was accused of hiding more than $2 billion in income from the IRS for 20 years using secret offshore accounts, encrypted messages and false documents. It was said to be the largest tax evasion case in US history.

Although Mirabeau managed up to $1.7 billion in assets for this client, he did not conduct sufficient due diligence on these transactions. The case, concluded in 2023, highlights Mirabaud's shortcomings in AML compliance.

FINMA also ordered Mirabaud to review and re-document high-risk transactions between 2018 and 2022. The bank tried to keep the case secret, but a Swiss court ruled it could be made public. While Mirabaud claims to have improved its compliance and risk management processes, the regulator's findings highlight the need for increased vigilance in preventing financial crime.

Compliance Insight:

This case highlights the importance of robust AML/KYC measures, especially for private banks dealing with high-net-worth clients and complex financial structures. Mirabaud's failure to sufficiently scrutinize its customer relationships and transactions allowed illegal activities to be facilitated, resulting in significant regulatory consequences. Private banks must implement strict compliance policies to reduce money laundering risks and protect the integrity of the financial system.

Report it:

FinTelegram encourages Insiders to report past or ongoing compliance violations to Mirabaud. We are particularly interested in details about the bank's relationships with high-risk clients and any gaps in its AML protocols.