Swiss court fines Lombard Odier $3.7m in Karimova money laundering case; bank to appeal

Swiss private bank Lombard Odier said it would appeal after Switzerland’s Federal Criminal Court fined it three million Swiss francs, about $3.7 million, in a money laundering case linked to Gulnara Karimova.

Karimova is the daughter of Uzbekistan’s late former president Islam Karimov.

The court in Bellinzona issued its full decision on Monday.

It said a former Lombard Odier account manager had been given a fully suspended 24-month prison sentence for aggravated money laundering.

The court fined Lombard Odier for failing to take all reasonable and necessary organisational measures to prevent the offence.

It also ordered the confiscation of assets worth more than 400 million Swiss francs.

Lombard Odier told AFP that it disagreed with the judgment and would appeal.

A bank spokesperson said Lombard Odier had robust internal controls and anti-money laundering procedures in place at the time.

She said prosecutors had never alleged that the bank knowingly or deliberately participated in money laundering.

The spokesperson also said Lombard Odier had initiated the proceedings by submitting a report to the Money Laundering Reporting Office Switzerland.

The Federal Criminal Court said a criminal organisation known as “the Office” had received corrupt payments from foreign telecommunications companies operating in Uzbekistan.

According to the court, the payments were made to secure Karimova’s influence.

The money was moved through opaque financial transactions before being transferred to accounts held by companies belonging to “the Office” at banks in several countries, including Lombard Odier in Geneva.

The court said the judgment was not final and that the defendants continued to be presumed innocent.

Karimova is serving a 13-year prison sentence in Uzbekistan for embezzlement.

In April, the Swiss court dismissed proceedings against her in the alleged money laundering case, saying there was no prospect of her release or extradition in time for her to attend proceedings before the statute of limitations expired.

Switzerland indicted Karimova in 2023 in a wider case involving alleged corruption, fraud and organised crime over several years.

The Swiss case covers the period from 2005 to 2012.