(Bloomberg) -- Mirabaud & Cie SA “seriously violated” Swiss financial-markets law by failing to properly vet client relationships and transactions for money-laundering risks, according to a ruling from the financial regulator unveiled for the first time.
The Swiss Financial Market Supervisory Authority concluded enforcement proceedings against Mirabaud in June 2023 after a two-year investigation, the regulator announced Tuesday. The disclosure came after the Federal Supreme Court dismissed an appeal from bank seeking to prevent the findings from being made public.
Finma is confiscating 12.7 million Swiss francs ($15 million) of illegally generated profits from Mirabaud and has opened three proceedings against individuals, it said. A Finma ruling legally binding since August 2023, which hasn’t been contested, prohibited the bank from accepting new clients with increased money-laundering risks until compliance with Swiss law has been restored.
The regulator said it opened the probe after finding “indications of misconduct” allegedly connected to an unidentified businessman accused of tax evasion. Mirabaud managed assets of as much as $1.7 billion “within the scope” of business relationships directly or indirectly connected to the now-deceased businessman, Finma said without disclosing his identity.
At times, those assets accounted for up to 10% of Mirabaud’s entire assets under management, according to Finma.
“Mirabaud altogether did not have adequate organisation and sufficient risk management for monitoring these business relationships,” Finma said in the statement.
The bank cooperated with Finma during the proceedings and implemented measures to improve anti-money laundering, risk management, internal controls and governance that are suitable for restoring compliance with the law, Finma said.
“Over the last years, the Bank has implemented operational, organizational and personal measures elevating its compliance and risk management processes and is committed to maintaining the highest standards in this respect,” Mirabaud said in an emailed statement. “As highlighted by FINMA, the Bank was fully cooperative.”
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