Switzerland’s Federal Criminal Court has fined private bank Lombard Odier 3 million Swiss francs ($3.7 million) for failing to prevent money laundering linked to an Uzbek corruption network. The ruling, delivered on July 28, 2026, also saw a former relationship manager receive a two-year suspended prison sentence, while proceedings against Gulnara Karimova, daughter of Uzbekistan’s former president, were stayed.
Court Findings and Penalties
The Geneva-based bank was found guilty of inadequate organisational measures under Swiss corporate criminal liability law. Judges concluded that Lombard Odier “did not take sufficient measures to ensure that further enquiries regarding the origin and economic purpose of these funds were conducted and duly documented,” according to the court’s statement.
Key penalties imposed include:
- A 3 million Swiss franc ($3.68 million) fine on Lombard Odier for organisational deficiencies in anti-money laundering controls.
- A 24-month suspended prison sentence for a former relationship manager (identified only as C.) convicted of aggravated money laundering.
- Confiscation of more than 400 million Swiss francs in assets linked to the laundering scheme or controlled by the “Office” structure.
- Criminal proceedings costs of approximately 2.3 million francs, with 500,000 francs assigned to Karimova and to be deducted from seized funds.
The court noted that the employee had managed about $140 million in accounts and possessed evidence suggesting that part of the assets originated from corruption but failed to carry out required checks.
Background: The “Office” and Uzbek Corruption Allegations
Prosecutors alleged that Karimova and associates operated a criminal organisation known as “The Office,” which channelled hundreds of millions of dollars in bribes from telecommunications deals into Swiss bank accounts between 2005 and 2013. Swiss authorities accused Lombard Odier of lacking adequate safeguards, allowing tainted funds linked to this network to be concealed through its Geneva operations.
The case dates back two decades, with formal proceedings against the bank opening in December 2016 after the institution proactively reported suspicions to the Swiss Money Laundering Reporting Office (MROS) in 2012. The trial began in April 2026 at the Federal Criminal Court in Bellinzona, focusing on charges where the statute of limitations had not expired—covering deposits exceeding $120 million and withdrawals over $20 million.
Bank’s Response and Appeal Plans
Lombard Odier has consistently maintained that it did not knowingly or willingly participate in money laundering. In a statement, the bank emphasised that the investigation originated from its own 2012 suspicion report and that it had “fully cooperated with the relevant authorities throughout.” The institution firmly refuted allegations of organisational shortcomings and announced it would appeal the ruling.
“The claims raised against the Bank pertain to alleged organisational shortcomings in relation to the effective prevention of money laundering. The Bank firmly refutes these allegations and is defending itself vigorously at trial,” Lombard Odier said in a pre-judgment statement. Following the verdict, the bank reiterated its intention to challenge the decision.
Legal and Regulatory Implications
The judgment reinforces Switzerland’s corporate criminal liability framework, under which companies can be held accountable if they fail to implement reasonable measures to prevent money laundering. By imposing a financial sanction alongside individual criminal liability, the court underscored the imperative for financial intermediaries to maintain rigorous compliance controls, particularly when handling politically exposed persons and high-risk transactions.
The ruling is not yet legally binding pending the appeal process. It also sets a jurisprudence benchmark for financial crime enforcement in Switzerland, highlighting the expectations for banks to conduct thorough due diligence, document enquiries into fund origins, and escalate red flags effectively.
Wider Context in Swiss Banking Enforcement
This case marks one of the most prominent money laundering prosecutions involving a major Swiss private bank in recent years. It follows a pattern of heightened scrutiny over compliance failures linked to cross-border corruption schemes, particularly those involving Central Asian elites and telecommunications bribery networks. The asset confiscation order—totaling more than 400 million francs—reflects the scale of proceeds authorities believe were laundered through the Swiss financial system.