Swiss court fines Lombard Odier in money laundering case

The Swiss Federal Criminal Court has fined Lombard Odier & Cie SFr3 million ($3.7 million) for failing to prevent an Uzbek money-laundering network from operating through its Geneva branch. A former relationship manager, identified only as C., received a two-year suspended prison sentence for aggravated money laundering, having managed approximately $140 million in tainted funds. The court found that the bank had evidence suggesting assets originated from corruption but did not conduct adequate due diligence. The case is linked to Gulnara Karimova, an Uzbek businesswoman and former diplomat, whose case was dismissed because her detention in Uzbekistan made a fair trial impossible. Prosecutors alleged that the bank lacked safeguards to prevent concealment of funds connected to 'The Office,' a structure allegedly created by Karimova. Lombard Odier stated it disagrees with the ruling and plans to appeal, noting that it proactively reported suspicions to Swiss authorities in 2012. Over $400 million in related assets in Switzerland will be confiscated.