Swiss court fines Lombard Odier in Uzbek money laundering case - Reuters
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A Swiss court has imposed a 3 million Swiss franc ($3.68 million) penalty on the private bank Lombard Odier for its failure to prevent money laundering. However, the court concluded proceedings against Gulnara Karimova, the daughter of Uzbekistan's former president.
Swiss prosecutors had previously accused Karimova of accepting bribes and operating a criminal enterprise, referred to as "The Office," which allegedly funneled hundreds of millions of dollars into Swiss bank accounts between 2005 and 2013.
Lombard Odier, based in Geneva, along with a former employee, faced accusations of facilitating the concealment of funds derived from Karimova's alleged illicit activities. The trial commenced in April.
In a released statement, the court declared that Lombard Odier was fined for "failing to take all reasonable and necessary organisational measures" to prevent money laundering. Additionally, the court mandated asset confiscations exceeding 400 million francs.
An ex-account manager for Lombard Odier, identified only as C., received a 24-month suspended prison sentence.
Lombard Odier stated on Monday that the underlying case originated from its proactive reporting of suspicions to Swiss authorities in 2012. The bank asserted that it possessed strong internal controls and anti-money laundering protocols at the time and intends to appeal the verdict.
Karimova, 54, daughter of the late Uzbek President Islam Karimov, has consistently denied any wrongdoing.
She was incarcerated in Uzbekistan in 2019 after breaching the terms of her house arrest, which followed her conviction there on charges of embezzlement and extortion.
The court explained that the case against Karimova was discontinued because there was no likelihood of her release or extradition to Switzerland before the statute of limitations expired.
Proceedings against another defendant, identified as B., who resides in Russia, were also halted because he was unable to travel to Switzerland through no fault of his own.
The court noted that the sentences for C. and Lombard Odier were reduced due to the time that had passed since the commission of the crimes. Charges related to events prior to July 2011 were dismissed due to the statute of limitations.