Swiss Prosecutors Expose Illegal Transfers
Switzerland has fined Pictet Bank, one of the country’s oldest private banks, for failing to stop illegal money movements linked to a huge corruption investigation. The case is part of Brazil’s “Lava Jato” or “Car Wash” operation, which uncovered widespread corruption across multiple countries. Swiss authorities say Pictet Bank did not do enough to prevent dirty money from being transferred through its accounts.
The Swiss Office of the Attorney General announced that the bank would have to pay a fine of 2 million Swiss francs, which is about $2.5 million. This punishment came after investigators found that between June 2010 and May 2013, more than $4.1 million in illegal funds were moved through an account at Pictet Bank. The money came from bribes and was linked to Brazil’s state-run oil company, Petrobras.
Authorities said these funds were moved to make them look clean, a process known as money laundering. Instead of checking the background and risk level of the accounts involved, Pictet Bank reportedly failed to notice or stop these suspicious transactions. Because of this, they made it easier for criminals to hide where the money came from.
Weak Oversight Allowed Suspicious Transfers
Pictet Bank is based in Geneva and has been in business since 1805. It’s known for helping people and families manage their wealth, not for commercial lending or investment banking. Even though the bank says it focuses on offering safe and trusted services, the Swiss authorities found that Pictet’s internal systems had serious flaws.
One major problem was how the bank handled accounts connected to Brazilian public officials and their helpers. The investigators said Pictet should have labeled these accounts as “high risk”, but they didn’t. Because of that, the bank didn’t look closely enough at what was happening with the money.
A total of 54 money transfers were approved by the bank without proper checks. The money was funneled through accounts held by offshore companies, which are often used to hide ownership. One of those companies even had an account at Pictet Bank. All these steps made it harder to see that the money was actually coming from illegal bribes.
While these actions were taking place, a former Pictet manager was overseeing the Brazilian market. This manager was found guilty of aggravated money laundering and received a six-month suspended prison sentence, along with two years of probation. That means the person will not go to jail unless they commit another crime during the next two years.
No Appeal, But Questions Remain
Both Pictet Bank and the former employee said they would not appeal the penalties. That means they accept the judgment from the Swiss authorities and will not challenge it in court.
The bank has tried to distance itself from the scandal by stating that this fine doesn’t mean it is guilty or takes full responsibility. It also clarified that the issue does not involve its core services like asset management or alternative investments.
Swiss prosecutors have been digging into the Lava Jato case for several years. The case originally began in Brazil back in 2014 when a currency dealer was arrested. Since then, it has grown into the country’s biggest corruption case ever, with hundreds of people facing legal action.
In this specific matter, Swiss investigators focused on how dirty money from Brazilian bribes ended up in Swiss banks. Their goal was to stop these kinds of illegal money movements and to hold responsible parties accountable.
Even though Pictet Bank says the matter is closed for them, this fine serves as a public warning. It shows that even respected institutions must follow strict rules to stop financial crimes.