Swiss Lombard Odier Bank Charged in Money Laundering Case Involving Gulnara Karimova
Uzbekistan
Lombard Odier, one of Switzerland’s most prestigious financial institutions, and one of its former employees have been charged with money laundering. The Swiss federal prosecutor has accused the bank of helping conceal the illegal activities of its former client, Gulnara Karimova, the daughter of the late President of Uzbekistan, Islam Karimov, according to Financial Times.
The report states that for several years, the bank helped conceal money laundering operations carried out by Karimova. She allegedly used her political power to embezzle funds from lucrative state contracts in Uzbekistan, laundering the money through an organization called “The Office” based in Switzerland.
Karimova, who was arrested in Uzbekistan in 2014, was convicted of bribery and tax evasion in 2015, receiving a 10-year prison sentence. In 2020, another court ruling found her guilty of embezzlement and extortion, sentencing her to an additional 13 years in prison.
Swiss prosecutors have charged Lombard Odier for failing to comply with anti-money laundering standards and weakening internal controls. The bank had reported its concerns regarding Karimova to Swiss anti-money laundering authorities in 2012, but in 2016, the bank itself became a suspect in the case.
The bank, relying on its legal rights, maintains that the charges are unfounded and plans to defend itself. Prosecutors argue that the bank failed to adhere to required standards in managing the accounts opened in Karimova’s name, particularly regarding high-risk customers.
Additionally, a former employee of Lombard Odier has also been charged, as he had worked with Karimova before joining the bank. Legal proceedings in Switzerland are ongoing, and the results of this case are awaited.
In January 2020, Uzbekistan’s Prosecutor General announced its intention to recover 70 works of art from Switzerland. In May of the same year, the Justice Ministry reported the return of $10 million worth of assets from France.
Karimova, who was arrested in Uzbekistan in 2014, was convicted of bribery and tax evasion in 2015, receiving a 10-year prison sentence. In 2020, another court ruling found her guilty of embezzlement and extortion, sentencing her to an additional 13 years in prison.
Swiss prosecutors have charged Lombard Odier for failing to comply with anti-money laundering standards and weakening internal controls. The bank had reported its concerns regarding Karimova to Swiss anti-money laundering authorities in 2012, but in 2016, the bank itself became a suspect in the case.
The bank, relying on its legal rights, maintains that the charges are unfounded and plans to defend itself. Prosecutors argue that the bank failed to adhere to required standards in managing the accounts opened in Karimova’s name, particularly regarding high-risk customers.
Additionally, a former employee of Lombard Odier has also been charged, as he had worked with Karimova before joining the bank. Legal proceedings in Switzerland are ongoing, and the results of this case are awaited.
In January 2020, Uzbekistan’s Prosecutor General announced its intention to recover 70 works of art from Switzerland. In May of the same year, the Justice Ministry reported the return of $10 million worth of assets from France.
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