An ex-Julius Baer banker has pleaded guilty in the U.S. to money-laundering charges. What does this mean for the Swiss bank?
Last month, Matthias Krull was snapped up by police in Miami. Now, the ex-Julius Baer banker is cooperating with officials as part of a guilty plea to one count of money laundering linked to Venezuela, according to a statement by the Department of Justice.
«Ultimately, Krull joined the conspiracy to launder $1.2 billion worth of funds that were embezzled from PDVSA, he admitted,» the DOJ said. «Krull and members of the money laundering conspiracy used Miami, Florida real estate and sophisticated false-investment schemes to conceal that the $1.2 billion was in fact embezzled from PDVSA,» referring to Venezuela's state-owned oil and natural gas company.
Trouble for Julius Baer
The 44-year-old German left Julius Baer in June for private bank Gonet in the Bahamas. The Genevan firm appears to have bought itself a reputational hazard – but even more so, the guilty plea puts Julius Baer in a delicate position.
Swiss regulator Finma is reportedly conducting an enforcement procedure against Julius Baer for its lack of diligence in relation to PDVSA corruption. Swiss officials have also frozen $118 million in Swiss accounts held by a Venezuelan businessman.
Details from Krull's sentencing, scheduled for October 29, could put the squeeze on Julius Baer – especially since the Swiss bank committed to keeping its nose clean as part of a tax evasion settlement in 2016. The bank hasn't commented on Krull thus far.
