Swiss Authority punishes Bank Audi unit for money laundering violations

(MENAFN) The Swiss Capital Market Supervision Authority has announced that Bank Audi's Swiss unit, affiliated with a prominent Lebanese banking group, has been found in breach of its obligations regarding anti-money laundering measures, alongside serious violations of capital market regulations. In response to these infractions, the authority has imposed penalties, including deductions for profits totaling 3.9 million Swiss francs (approximately USD4.34 million) and an additional capital charge amounting to 19 million francs.

The authority emphasized that throughout the investigative process, the bank cooperated with regulatory authorities and undertook corrective measures to rectify its compliance with relevant laws and regulations. However, the severity of the violations warranted significant penalties as part of the enforcement actions taken by the supervisory body.

The revelations come against the backdrop of Lebanon's protracted monetary and economic crisis, which has significantly undermined the stability of the country's financial and banking sector. Once considered a cornerstone of Lebanon's economy, the banking sector has been severely impacted by the crisis, characterized by a precipitous decline in the value of the Lebanese pound and widespread paralysis within the banking industry. This crisis has exacerbated liquidity challenges, leading to banks' inability to fulfill obligations to depositors, particularly in returning dollar deposits amid acute scarcity of foreign currencies and dwindling foreign currency reserves.

The penalties imposed on Bank Audi's Swiss unit underscore the global ramifications of Lebanon's ongoing financial crisis, highlighting the imperative for financial institutions to adhere rigorously to regulatory standards to mitigate risks and safeguard the integrity of the financial system. The enforcement actions serve as a stark reminder of the importance of robust oversight and compliance mechanisms in preserving the stability and credibility of financial institutions operating across international borders.

MENAFN25032024000045015682ID1108017676