Swiss perspectives in 10 languages

Falcon bank fined for money laundering, ex-CEO acquitted

Logo of Falcon Private Bank
Earlier this year, the bank, which was set up in 1965, announced it is ceasing private banking. Headquartered in Zurich, the bank has had subsidiaries in Geneva, Hongkong and Singapore as well as representations in Abu Dhabi, Dubai and London. © Keystone/Ennio Leanza

A Swiss court has found the Zurich-based Falcon Private Bank guilty of money-laundering offences.

The Federal Criminal CourtExternal link on Wednesday ordered the Abu Dhabi-owned bankExternal link to pay a fine of CHF3.5 million ($3.8 million) for failing to set up the necessary controls. It was the first time that a Swiss bank was taken to court over accusations of money laundering.

It also has to pay CHF7 million in damages, according to a report by the Swiss news agency Keystone-SDA. 

However, a former CEO of the bank was acquitted in connection with the case. The defendant was accused of helping to launder funds for Khadem Al-Qubaisi, a businessman from the United Arab Emirates, between 2012 and 2016.

The court said it could not be proved that the former chief executive knew of the criminal origin of the assets.

Sale of shares

The case centres on the illicit proceeds of the sale of shares of the UniCredit banking group worth €210 million (CHF219 million).

The Federal Administrative Court last week confirmed a five-year ban by the Swiss financial regulator on the former banker, but the verdict is still to be made legally binding.

In May, the bank announced it would cease operations, following accusations of involvement in the Malaysian 1MDB fraud case.

Popular Stories

Most Discussed

News

Gestational diabetes increases the risk of adult-onset diabetes

More

Gestational diabetes found to increase risk of adult-onset diabetes

This content was published on A research team from the Lake Geneva region has identified persistent dysfunctions in glucose regulation in women with gestational diabetes. In the long term, this can increase the risk of adult-onset diabetes by up to ten times.

Read more: Gestational diabetes found to increase risk of adult-onset diabetes
The Graubünden village of Brienz has to be evacuated by midday on Sunday

More

Swiss village must be evacuated by midday on Sunday

This content was published on The village of Brienz-Brinzauls in eastern Switzerland, which is threatened by a rockfall, must be evacuated by 1pm on Sunday. All residents must leave the village.

Read more: Swiss village must be evacuated by midday on Sunday
Former judge in Chur found guilty of rape

More

Former Swiss judge found guilty of rape

This content was published on A former judge of the Graubünden Administrative Court in eastern Switzerland has been found guilty of rape, sexual harassment and threatening a former trainee.

Read more: Former Swiss judge found guilty of rape

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here . Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR