Julius Baer is closing out a 2016 deal with U.S. prosecutors for helping American tax dodgers and cheats. The moves comes as the Swiss private bank is snagged in a South American money laundering scandal.
Zurich-based Julius Baer can breath a sign of relief: U.S. justice officials are closing the book on a 2016 deal with prosecutors over tax evasion, the bank said in a statement on Wednesday.
The bank paid $547 million to settle criminal charges, and had to adhere to certain terms for three years. On Monday, a U.S. court formally dismissed the criminal charges against Julius Baer, which successfully ends the 2016 agreement.
«This important step confirms Julius Baer's approach to cooperating constructively with competent authorities and our commitment to fulfill our regulatory obligations and responsibilities,» Chief Executive Bernhard Hodler said in a statement. He was head of risk for the period during which the U.S. and other scandals occurred before becoming CEO 14 months ago.
Rethinking South America
The move comes as the bank finds itself snagged in another probe over its alleged dealings with well-heeled Venezuelans linked to government corruption. The bank itself hasn't been accused of wrong-doing. Three months ago, former Julius Baer banker Matthias Krull admitted helping launder money from a government-tied foreign exchange embezzlement scheme; he was sentenced to a ten-year prison term.
Julius Baer said on Monday that the ensuing clean-up and an invasive extra layer of client checks will cost the bank nearly $90 million. It has retreated from Venezuela and is rethinking its ambitions for South America under Beatriz Sanchez, a former Goldman Sachs banker.
