Julius Baer fined over lapses in AML controls
From Yahoo Finance: 2025-05-15 09:46:00
Switzerland’s FINMA fines Julius Baer over $4.76m for compliance and anti-money laundering lapses with high-risk clients. The enforcement decision from November 2024 highlighted the bank’s failure to detect suspicious transactions from 2009 to 2019. Julius Baer must repay unlawfully earned profits and cover costs for violating money laundering rules.
The investigation involved accounts linked to a Russian banker and Indian nationals, raising whistleblower concerns. Despite red flags, the bank continued managing these accounts without addressing associated risks. FINMA also flagged issues at Julius Baer’s Monaco and Singapore branches, separate from previous sanctions related to Signa losses and anti-money laundering failures.
Julius Baer faces setbacks as it tries to recover from financial hits like the Signa collapse, leading to a leadership overhaul. The bank’s recent overhaul of its organizational structure aims to enhance client-centric operations and sustainable growth. The establishment of the Executive Board and Global Wealth Management Committee earlier this year reflects the bank’s strategic focus.