Switzerland's financial regulator began enforcement proceedings against an ex-Julius Baer banker over money laundering. Two others, including ex-CEO Boris Collardi, escaped with reprimands.
Bern-based Finma wrapped a nearly year-long investigation into top executives of Julius Baer, it said in a statement on Thursday. This comes nearly a year after the wealth manager was censured heavily for failing to spot Venezuelan graft money in its accounts.
Finma is opening an enforcement proceeding against one former top executive, and reprimanding two more in writing. The Swiss regulator didn't name any of the four bankers by name, but Pictet, where ex-Julius Baer CEO Boris Collardi became a partner nearly three years ago, responded by noting the decision – and backing him, in an emailed statement.
«Pictet stands behind Boris Collardi. We have full confidence in his work at Pictet,» a spokesman for the bank said. Collardi, through a personal spokesman, said he is gratified Finma didn't open a formal enforcement proceeding against him.
Year-Long Threat
The threat had hung over him since Julius Baer was sanctioned by Finma last year. The regulator noted that while «mistakes were made in the case of the two reprimanded managers, there are not sufficient indications of direct, causal responsibility for the serious violation of supervisory law.»
The regulator said it requires evidence of this direct and individual responsibility to ban bankers from the financial industry. The other banker to receive a written reprimand from Finma is likely to be Bernhard Hodler, who succeeded Collardi as CEO at Julius Baer, and left 16 months ago.
Holder declined to comment to finews.asia. Both men have had bonuses and other awards from Julius Baer held back as a result of the scandal, while Julius Baer has overhauled its pay schemes as part of remedial measures from Finma.
Ex-Banker Faces U.S. Charges
A person familiar with the matter said the executive who faces an enforcement is the former boss of Matthias Krull. Krull is an ex-Julius Baer banker who pled guilty to money laundering charges in the U.S. The executive who managed him at the time couldn't be reached for comment.
Finma said it eschewed any action on a fourth person, after they had agreed to not accept a managerial role at a supervised financial firm again. A person familiar with the matter said this is Gustavo Raitzin, a close Collardi associate and long Julius Baer's top man in Latin America.
