Karimova case: Swiss court fines Lombard Odier and orders major confiscation
Switzerland’s Federal Criminal Court fined Lombard Odier three million francs on 27 July for organisational failings concerning money laundering. It ordered confiscation of more than 400 million francs. Proceedings against Gulnara Karimova herself ended on procedural grounds; that was not an acquittal on the merits.
A former relationship manager received a suspended 24-month prison sentence for aggravated money laundering in case SK.2023.42. The court said indications of corruption in Uzbekistan’s telecoms market were met with superficial checks. The bank had not taken sufficient organisational measures to prevent its employee’s laundering.
In examining the money’s origins, the court found that a criminal organisation called Office existed. It received corrupt payments from foreign telecoms companies seeking the favour of Karimova, daughter of Uzbekistan’s former president. Opaque transactions channelled money to corporate accounts at several banks.
Karimova could not be tried because she was imprisoned in Uzbekistan and could not be brought to Switzerland before prosecution became time-barred. Proceedings against a co-accused also ended because of a procedural obstacle. Those decisions are distinct from the convictions of the employee and bank.
Confiscation concerns Swiss assets derived from laundering or controlled by Office. The judgment was not final when published. Lombard Odier announced an appeal and maintains that its controls were sound at the time.
