Pedestrians walk through the entrance to Lombard Odier in Geneva, Switzerland.
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Lombard Odier, one of Switzerland’s oldest private banks, has been charged by Swiss prosecutors with “aggravated money laundering”.
Lombard Odier and a former employee of the bank were indicted in the Swiss Federal Criminal Court on Tuesday, the Swiss Attorney General’s Office (OAG) said in a statement on Friday.
OAG said the suspect is suspected of helping hide the proceeds of a criminal organization founded by Gulnara Karimova, the daughter of Uzbekistan’s authoritarian president Islam Karimov, who died of a stroke in 2016. Karimova was indicted by the Attorney General in 2023 on charges of laundering money as a result of criminal activities in Switzerland between 2005 and 2012.
“The investigation led OAG to believe that some of the funds laundered in Switzerland may have been transferred to the Lombard Odier bank account in Geneva.The bank and one of its former relationship managers , allegedly played a crucial role in Switzerland in concealing the proceeds of “The Office’s” criminal activities,” the OAG said in a statement.
They have been under investigation since 2016, the prosecutor added.
Lombard Odier’s origins date back to 1796, but he denies the allegations.
The bank said in a statement on Friday: “We have taken note of the decision of the Swiss Attorney General’s Office to prosecute the bank for insufficient controls.”
“This action follows the commencement of a formal investigation into the bank that was initiated and made public in 2016. To the bank, the allegations are baseless and without merit. The bank plans to defend itself vigorously.”
The bank added that the case began with Lombard Odier himself “actively reporting allegations to the Swiss authorities.”
CNBC reached out to Grégoire Manguy, who represented Karimova throughout her legal battle with Swiss authorities. Karimova is currently serving a prison sentence in Uzbekistan.
