Not off the Hook in U.S.
Finma is now pursuing an enforcement process against Julius Baer, while the bank itself is conducting a large project called «Atlas» which is examining client depots to test their compliance with the latest regulations. On Thursday, the regulator said it is in contact with Julius Baer over the arrest of Krull, but declined further comment. Finma has opened enforcement proceedings over PDVSA, but doesn't disclose against whom or which bank.
The arrest of Krull is especially sensitive for Julius Baer as it still isn’t off the hook as far as the tax dispute with the U.S. is concerned. Since the payment of the $540 million fine in 2016 only postponed the proceedings against the bank. Only in 2019 will the U.S. authorities drop the case.
Collardi's Growth Strategy
Swiss investigators weren’t involved in the «Operation Money Flight» while the DoJ did seek British, Italian and Maltese assistance. The Matthias Krull affair will increasingly call into question the growth strategy at Julius Baer under former CEO Boris Collardi, now a partner at privately-held Pictet.
The piling up of affairs, like the private bankers in Moscow, who conducted weapons deals on behalf of the Swiss armaments firm Ruag, back the view that under Collardi the compliance- and «know your customer» rules were partially ignored in favor of client money growth.
Collardi’s successor at the bank, Bernhard Hodler (pictured above) also needs to address these questions: He was for years head of compliance under Collardi. Should Julius Baer sink deeper into the PDVSA money laundering mire, then Hodler will also have to shoulder some of the blame. Julius Baer declined to comment on the arrest of Krull.
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