The Swiss private bank is poised to leave a five-year graft probe linked to the world's governing soccer body behind – at a hefty price.
Julius Baer's failings in spotting graft were laid bare in a detailed February sanction issued by Swiss financial regulator Finma: as recently as two years ago, the Swiss bank still had serious lapses in its anti-money laundering measures.
U.S. authorities are close to bringing Julius Baer to book too: «The bank is currently in advanced discussions with the Department of Justice about reaching a resolution in such matter, which may result in the payment of a double-digit million U.S. dollar amount,» Julius Baer said in a statement on Wednesday.
Staggered Dividend
FIFA, a U.S.-led investigation which kicked off with dawn raids and arrests at Zurich's ritzy Baur au Lac hotel in May 2015, has long been in the shadow of Julius Baer's other major legacy, Venezuelan oil and gas firm PDVSA. The bank is currently prohibited from any major acquisitions and has an outside minder, Finma ordered.
The bank also said it plans to propose the second leg of its 2019 dividend at a shareholder meeting on November 2. Julius Baer as well as UBS and Credit Suisse buckled to regulatory pressure to rethink their payout policies for last year when the coronavirus pandemic mushroomed around the time year-end dividends are paid.
