Switzerland Punishes Mirabaud For "Serious" Compliance Violations, Confiscates SFr12.7 Million

Tom Burroughes

18 September 2024

The Swiss regulator has barred from taking on new clients who carry increased money laundering risks until serious compliance failings have been corrected. The regulator has also confiscated SFr12.7 million ($15 million) of unlawfully generated profits from the Geneva-headquartered bank.

The Swiss Financial Market Supervisory Authority, , risk management and money laundering prevention over a prolonged period.”

Mirabaud cooperated with FINMA during the proceedings. It also took operational, organisational and HR measures to rectify the shortcomings during the FINMA proceedings. As well as a broad-based reorganisation, Mirabaud has strengthened the measures in place for anti-money laundering, risk management, the entire internal control system and governance. FINMA generally considers these measures to be suitable for restoring compliance with the law, the regulator’s statement said.

FINMA has ordered the bank to make further adjustments to the measures in place for anti-money laundering, expand its internal control system and renew and strengthen its corporate governance organisationally, and in terms of HR. In addition, the bank must review all its client relationships from a risk perspective. The executive board must then decide on this basis whether to continue them.

Mirabaud must also thoroughly review and, if necessary, re-document all relevant transactions with increased risks from 2018 to 2022. Furthermore, it must create new incentives in its remuneration policy for an appropriate handling of risks.

Pending full implementation of the measures ordered and restoration of compliance with the law, FINMA has prohibited the bank from accepting any new clients with increased money laundering risks. It has also banned all activities that increase operational risks. FINMA has opened three enforcement proceedings against individuals connected to the case.

The regulator added that it is not disclosing any further details concerning these proceedings or the identity of the individuals concerned. FINMA’s ruling, which has been legally binding since August 2023, has not been contested.