The Swiss Financial Market Supervisory Authority (FINMA) has outlined several measures Swiss private bank Julius Baer must implement after being found of “serious AML failings.”
FINMA claims the bank did not meet money laundering standards between 2009 and 2018. As a result, the bank has been ordered to undertake various measures to meet anti-money laundering (AML) obligations.
Additionally, Julius must change the way it recruits and manages client advisers, as well as alter its remuneration and disciplinary policies.
Other measures to be implemented include: the board of directors must increase its attention to AML responsibilities and Julius will be banned from conducting large and complex acquisitions until it is fully compliant.
Finally, FINMA will appoint an independent auditor to monitor implementation of the changes.
Initial concerns of failures came to light in connection with alleged cases of corruption connected to oil company PDVSA and world football federation FIFA. The regulator completed inspections in multiple Swiss banks to identify whether AML laws were being met. After an in-depth investigation, it found the bank had failed to meet standards.
The issues with Julius’ processes FINMA identified included systematic failings to meet due diligence standards under AML laws and violations in reporting requirements.
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