FINMA Confiscates $15 Million from Mirabaud for AML and Financial Market Violations

Swiss financial market regulator FINMA has confiscated $15 million from private bank Mirabaud following violations of anti-money laundering (AML) and financial market laws. The Geneva-based bank was found to have insufficiently monitored customer relationships and transactions linked to a businessman, now deceased, who had been accused of tax evasion. FINMA did not disclose the identity of the individual or who had made the allegations.

In its statement, FINMA announced that it had initiated three proceedings against individuals, but no further details were provided. The regulator did not respond to requests for additional information on the case.

From 2010 onward, Mirabaud maintained business relationships with companies and financial structures that were potentially tied, either directly or indirectly, to the businessman, according to FINMA. At its peak, the bank managed up to $1.7 billion in assets associated with these relationships, which at times accounted for nearly 10% of its total assets under management.

FINMA also mandated that Mirabaud review and re-document transactions with increased risk that occurred between 2018 and 2022. Additionally, the bank must create new incentives within its remuneration policy to address these issues. “Finally, FINMA is confiscating CHF 12.7 million (Swiss francs) of unlawfully generated profits,” the regulator stated.

The case was concluded in 2023, though Mirabaud had attempted to keep the details private, a spokesperson for the bank confirmed. A top Swiss court recently ruled that the case could be made public, according to FINMA.

In response to the findings, Mirabaud acknowledged the shortcomings and stated that it has taken several steps to rectify the situation. “Over the last years, the Bank has implemented operational, organizational, and personal measures,” the bank said, noting that these changes had “elevated” its compliance and risk management practices.

While Mirabaud cooperated with the regulator during the investigation, FINMA emphasized that there are still several measures the bank must implement. “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,” the regulator said.

Furthermore, FINMA has banned all activities that could heighten operational risks. The regulator is monitoring the bank’s compliance closely and has appointed an audit firm to oversee the process. “FINMA’s ruling has been legally binding since August 2023 and has not been contested,” the authority added.

By fLEXI tEAM