Between 2010 and 2011, the Swiss Financial Market Supervisory Authority, FINMA, conducted enforcement proceedings against Bank Julius Baer in relation to its cross-border financial services business with US private clients. This has now come to an end.

FINMA found that the bank was in breach of its obligations to record, limit and monitor the risks associated with US clients. As a result, the regulator prescribed various measures to restore compliance with the law and the bank has since put them in place. FINMA has now concluded these proceedings at the same time as the US authorities. This is normal practice in the case of proceedings that relate to US tax disputes.

Julius Baer, for its part, has reached an agreement with the US Department of Justice which entails the payment of a total of $547.25 million in connection with the bank's cross-border financial services business with US private clients. At the outset, the bank contacted FINMA off its own bat. It then conducted an internal investigation into the risks associated with its US client business between September 2009 and August 2010. The investigation found evidence that the bank had broken 'supervisory law,' prompting FINMA to initiate enforcement proceedings against Julius Baer in September 2010. The proceedings considered the bank's strategy and risk appetite in its US business, as well as its control systems, compliance culture, responsibilities, and collaboration with external asset managers.