A Swiss court fined private bank Lombard Odier CHF 3 million following failures linked to historical money laundering risks involving funds connected to the former Uzbek political elite. The case highlighted weaknesses in preventing the misuse of financial institutions for laundering proceeds of corruption.
Lessons Learned
- Wealth management firms remain exposed to corruption and source-of-wealth risks.
- Enhanced due diligence must challenge complex ownership structures and unusual wealth accumulation.
- Long-standing relationships must continue to be reviewed as risks change over time.
Key takeaway: Reputation, relationships and revenue cannot override effective risk management.