Geneva's prosecutor is pursuing an Angolan businessman suspected of money laundering. Banque Syz has frozen hundreds of millions as a result of the investigation.
The Genevan wealth manager saw more than 1.1 billion Swiss francs ($1.2 billion) frozen after it was caught up in a Swiss criminal investigation related to Angola and money laundering, Swiss daily «Tribune de Genève» (behind paywall, in French) reported.
The investigation was first revealed by «Gotham City» (behind paywall, in French), which didn't report the name of the bank. Investigators are looking at Carlos Manuel de São Vicente, former CEO of AAA Seguros, which insured oil sector activity in Angola, according to the Swiss investigative portal.
«Our obligations under banking secrecy prevent us from discussing this topic. Nevertheless, we can confirm that, like any Swiss financial institution, we apply our due diligence obligations towards our clients and report any suspicions of money laundering to the relevant authorities when necessary,» a spokesperson at Syz said on Wednesday.
From RBC to Banque Syz
Syz came to hold funds for Carlos Manuel when it acquired the Swiss activities of Royal Bank of Canada, or RBC, five years ago. Syz, which isn't being investigated, sparked the investigation after raising alarm with Swiss money laundering officials at MROS at the end of 2018.
Specifically, the bank had transferred $213 million from AAA Seguros to an account maintained by Carlos Manuel's holding company, which was in turn transferred to his personal account.
Suspected Money Laundering
Dissatisfied with the maintenance of his accounts, Carlos Manuel wanted to break off ties to Syz at the end of 2019, ordering his money sent to Singapore, according to court documents.
Meanwhile, Geneva's prosecutor opened an investigation into suspected money laundering, blocking funds suspected to be tied to Carlos Manuel and associates. Three months later, Carlos Manuel was charged criminally in Geneva; his lawyer says he contests the charges.
Unsuccessful Appeal
Carlos Manuel maintains that a portion of the funds represents repayments of loans made to the company. The Angolan firm is apparently not pursuing charges, which would in turn make the accusation of money laundering in Switzerland difficult to back up.
Carlos Manuel unsuccessfully appealed the blocking of accounts.
Dicey Client Relationship
Syz knew of a dicey client relationship when it acquired RBC Switzerland, and the accounts and funds weren't part of the valuation of the acquisition, a source familiar with the matter told finews.com. In short, Syz got the troublesome client «for free».
