Julius Baer Slapped with $300 Million Fine Over Russian Client Ties

Swiss bank Julius Baer has been fined $300 million by the country's financial regulator, FINMA, for violating risk management and anti-money laundering requirements. The bank faced sanctions due to its handling of clients linked to two Russian politically influential figures.

The regulator found that Julius Baer failed to adequately verify the source of assets from these clients, did not analyze negative media reports and suspicious client behavior critically enough, and violated requirements regarding the reporting of suspicious transactions.

FINMA also discovered that in 2019, Julius Baer made an exception to its customer due diligence rules for a particular client, citing a recommendation from an employee who had close personal ties to the client's family.

The bank has been required to hold additional capital of $300 million and will be subject to ongoing oversight until it completes a phased exit from relationships with clients that no longer meet its new risk assessment. Julius Baer will also forfeit approximately 10 million Swiss francs in profits earned from working with the Russian politically exposed persons.