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.
University students in Switzerland join Gaza protest wave
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Pro-Palestinian activists occupied university buildings in Lausanne, Geneva and Zurich on Tuesday, widening the protest movement in the Alpine nation.
TradeXBank to resume full operations after Sberbank Switzerland taken off sanctions list
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TradeXBank, the former Swiss branch of Russia’s Sberbank, will be able to resume its dollar-denominated activities from the second half of this year.
Geneva decides not to remove controversial memorials
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The city of Geneva has presented an action plan regarding a series of controversial local statues and monuments of historical figures linked to racism, colonialism or slavery.
University of Lausanne calls for end to pro-Palestine sit-in
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The pro-Palestinian occupation continues at the University of Lausanne (UNIL). On Monday evening, a group of students refused to agree to the deadline set by the rectorate.
Ukraine peace conference should include Russia, says Chinese ambassador
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China supports a peace conference on the Ukraine war that would see equal participation of all parties, says Chinese Ambassador to Russia Zhang Hanhui.
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A majority of Swiss citizens have open attitudes towards various infertility treatments, including even egg donation, which is currently prohibited.
Reports of Swiss cyber fraud almost doubled in six months
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The head of the new Federal Office for Cybersecurity (FOC), Florian Schütz, has presented a new strategy after just over four months in office.
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Falcon exits Swiss private banking after 1MDB scandal
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The company says it has changed its name to “Falcon Private” but will remain under the supervision of the Swiss Financial Market Supervisory Authority (FINMA) while it hands over its private banking clients and assets to the unnamed bank. “Three years ago, we gave Falcon Private Bank a new profile through innovative ideas and unconventional…
Swiss court orders Falcon bank to hand over ‘illegal’ 1MDB profits
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The Federal Court has rejected an appeal by Falcon Private Bank against money that Switzerland’s financial watchdog seized in 2016.
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Two Zurich bankers at Coutts Bank were fined by the Swiss authorities for failing to report suspicious transactions linked to the 1MDB scandal.
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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.