Conviction of Bankers in Zurich District Court
Four bankers working for Russian state-run Gazprombank were found guilty by Zurich District Court for helping Sergey Roldugin, a close friend of Russian President Vladimir Putin, move millions of dollars through Swiss bank accounts from 2014 to 2016. The four bankers were convicted for failing to perform due diligence in financial transactions related to Roldugin’s accounts.
“Putin’s Wallet”
Roldugin, a concert cellist known as “Putin’s wallet” and godfather to Putin’s eldest daughter, Maria, deposited millions of Swiss francs in Swiss bank accounts without adequate checks conducted by the convicted executives. Although it was not possible to establish the real owner of the funds, the bankers had failed in their duty to conduct due diligence and check.
Fines Imposed on Bankers
Three Russians and one Swiss banker were given fines totaling 741,000 Swiss francs ($809,000) for their involvement in the money laundering case. Banks in Switzerland are obliged to reject or terminate business relationships if there are doubts about the identity of the contracting party.
The Use of Strawmen and Red Flags Ignored
The case highlights how people like Roldugin were used as “strawmen,” a way to hide the true owners of money. The convicted executives had ignored red flags that suggested the funds were being funneled to Putin, in violation of international sanctions. Other red flags ignored by the bankers were the political and economic circumstances in Russia, use of middlemen, and offshore and intermediary accounts.
Reaction from Prosecution and Gazprombank
Prosecutor Jan Hoffmann welcomed the court’s decision and stated that it is an important sign that diligence of the law against money laundering has to be respected. Gazprombank, where the executives worked, has described the decision as a “black day” and plans to appeal. The US Treasury Department describes Roldugin as “part of a system that manages President Putin’s offshore wealth.”
Cleaning Up Switzerland’s Reputation
Switzerland has sought to clean up its reputation as a secret haven of billions in ill-gotten or laundered money. The trial was based on information about secret financial flows revealed in the Panama Papers leaks in 2016. Western nations have imposed sanctions against oligarchs and others with close ties to Putin’s government, including Roldugin.
Conclusion
The conviction of the four bankers serves as a reminder that banks must exercise caution and due diligence to prevent money laundering, even for high-profile clients. It also underscores the need for greater transparency in financial transactions worldwide, especially when it involves individuals close to political leaders.
Image Source: Wikimedia Commons
