Latin America has been a hot spot of growth for Swiss private bank Julius Baer. However, the number of departures has increased since Beatriz Sanchez took charge.
The latest to leave the private bank in Latin America are five bankers including Fabio Kreplak and Geronimo Escudero.
The two had been advising Argentine clients and had a book worth more than $700 million, according to «Citywire». Kreplak was based in Uruguay and Escudero in Zurich. Lucila Guelfi, a relationship manager, and two assistents also left at the same time as Kreplak and Escudero.
Julius Baer confirmed that the five had left. In Latin America, the bank has seen a number of its staff leave in recent months.
Money Laundering Allegations
In June, five of them joined Gonet private bank on the Bahamas. One of them was Julius Baer Panama Vice Chairman Matthias Krull.
In August, Krull was taken into custody in Miami on suspicion of money laundering. He confessed to washing $1.2 billion for people close to Nicolas Maduro, the president of Venezuela. The money was revenue belonging to the oil company PDVSA.
Krull had been one of the most successful relationship managers of Gustavo Raitzin, the veteran Latin America boss of Julius Baer. Beatriz Sanchez replaced him last year.
Raitzin reportedly had run a policy of helping clients to onboard, ie accepting clients who would have faced much tougher checks at other banks. Krull for instance brought $600 million in assets belonging at least partially to politically exposed people from Venezuela.
Unsavory Legacy
Customers in Latin America have made life hard for Julius Baer recently. It has been reported that the bank accepted tainted funds from Petrobras and Odebrecht and that South American football functionaries had had their briberies moved through its accounts.
Last year, Raitzin and his deputy, Marc Sulser, had to testify in a New York court in respect to such allegations.
Sulser has left the bank since, a departure seen as linked to the strategic reorientation brought under way by Sanchez, his new boss.
The new strategy is aimed at sharpening the bank’s focus in Latin America, where it sees most potential in Brazil Mexico and Argentina. The bank may also go onshore in Miami.
Latest Departures Hurt
But, perhaps even more pertinently, Sanchez will also have to comb through the books in South America to eliminate risky clients acquired under the guidance of Raitzin.
The departures of the Argentina and Uruguay bankers however has nothing to do with the new strategy and is a blow for the bank. Argentina is and remains a growth market and will likely get its new branch soon.
Reason for why Kreplak, Escudero and their colleagues have left was a great offer from Mirabaud, it was reported. The Geneva-based bank has already a sizeable business in Latin America that it is managing from Zurich and Spain. It looks as if the bank wants to set foot in Uruguay, something the bank didn’t want to comment upon.
