Swiss Bank “Lombard Odier” Faces Money Laundering Allegations From Prosecutors

On November 29, 2024, Switzerland’s oldest private bank, “Lombard Odier”, was indicted for money laundering and AML law violations by Swiss prosecutors.
On Friday, the Office of the Attorney General (OAG) of Switzerland stated that the accused parties allegedly concealed proceeds from a criminal organization established by “Gulnara Karimova”.

“Investigations have led the OAG to believe that part of the money laundering in Switzerland may have been transferred in bank accounts at Lombard Odier in Geneva. The bank and one of its former relationship managers are alleged to have played a decisive role in concealing the proceeds of the criminal activities of ‘The Office.’”

OAG

According to Swiss prosecutors, Gulnara Karimova and an unnamed accomplice are accused of participating in a criminal organization known as “The Office,” which operated internationally.

The group allegedly laundered hundreds of millions of dollars in bribes from telecommunications companies.

OAG also asserts that Lombard Odier & its previous employees were crucial in enabling Karimova’s illegal financial operations.

The OAG also revealed that the investigation into Lombard Odier and its former employee commenced in 2016.

According to media sources, the OAG alleges that “Lombard Odier” failed to adhere to AML regulations & its internal compliance procedures when establishing and managing 9 bank accounts linked to suspicious activities.

Despite its long history, dating back to 1796, Lombard Odier has denied all allegations.

On Friday, the Bank issued a notice that:

“We have taken note of the decision of the Office of the Attorney General of Switzerland to bring charges against the Bank for insufficient controls. This step follows the opening of a formal investigation against the bank initiated and made public in 2016. For the bank, the allegations are unfounded and without merit. The bank plans to defend itself vigorously.”

The bank also announced that the case was initiated by Lombard Odier’s “proactive reporting of suspicions to the Swiss authorities.”

Will This Decision Overshadow This Recent Legal Victory For The Swiss Banking Sector?

The indictment comes shortly after Credit Suisse, now part of UBS, was acquitted of money laundering charges related to a Bulgarian cocaine trafficking gang. The new allegations against Lombard Odier overshadow this recent legal victory for the Swiss banking sector.

Dominik Gross, an economic historian at Swiss NGO Alliance Sud, expressed concern about the growing number of scandals plaguing Switzerland’s financial industry.

While Lombard Odier may not face the same systemic risk as Credit Suisse, the indictment could still damage the bank’s reputation.

Prosecutors believe that some of these illicit funds may have been transferred through bank accounts at Lombard Odier in Geneva.

A former employee of the bank’s private client division, who worked there between 2008 and 2012, is suspected of opening or facilitating the opening of these accounts.

Read Also

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The Controversial Life of Karimova

In 2023, Karimova also faced accusations of money laundering due to high criminal activities in Switzerland between 2005 and 2012 by OAG.

She is the daughter of the late “Islam Karimov”– the Uzbekistan President, who died of a stroke in 2016, as the media states.

Karimova is currently in prison in Uzbekistan. In 2019, she was imprisoned for breaching her house arrest conditions.

Before that, in 2015, she was convicted of embezzlement and extortion, resulting in a prison sentence. Subsequently, in 2020, she received an additional sentence.