Reyl Intesa Sanpaolo Bank Under Investigation for Money Laundering

Swiss private bank Reyl Intesa Sanpaolo, which prides itself on its global reach and "responsible culture," has been placed at the center of an investigation into money laundering and aiding tax evasion.

 Headquartered in a grand building in one of Geneva's most exclusive neighborhoods, it describes itself as a customer-focused company that offers "solutions that address the increasingly complex needs of its clients."

But behind closed doors, the bank has come under scrutiny from regulators over this client list, which includes the children of Central Asian autocrats and other figures suspected of money laundering.

Correspondence between the bank and the Swiss Financial Market Supervisory Authority (FINMA), obtained by OCCRP and Le Monde, shows that the Swiss financial regulator has investigated Reyl Intesa Sanpaolo for showing "weaknesses in the area of ??money laundering" and failing to handle high-risk accounts.

Several detailed letters from FINMA to Reyl Intesa Sanpaolo, along with responses from the bank, reveal how a FINMA on-site inspection in the summer of 2023 revealed "a very high level of money laundering risk, as well as a negligence in the way tasks were carried out."

FINMA itself cannot bring charges, it can file complaints with Swiss criminal authorities - and is obliged to notify them if it discovers corporate or business fraud. It can also revoke a banking license, confiscate illegally obtained profits.

There is no evidence that FINMA has filed a complaint or taken other enforcement action against Reyl Intesa Sanpaolo. She told reporters that she could not comment on specific cases.

Reyl Intesa Sanpaolo also declined to comment on any specific case, but said it is "fully cooperating with supervisory authorities and gives the highest priority to ensuring compliance with all applicable regulations and continuously strives to improve its internal processes and controls."

The bank also said it had filed a complaint with Swiss authorities regarding the questions sent by OCCRP and its reporting partners: "The information you submitted is confidential, subject to banking secrecy obligations under Swiss law.

Switzerland's highly secretive banking sector is protected by draconian laws that prioritize the privacy of bank customers and restrict journalists from reporting on them.

Authorities have insisted that the country has strong anti-money laundering rules that can adequately control the banking sector, even as it maintains its traditional secrecy. But the new findings show that Swiss banks remain a destination of choice for international clients, some of them with unclear sources of wealth.

In its correspondence with the bank, FINMA raises questions about Reyl Intesa Sanpoalo's handling of accounts belonging to six high-risk clients, including a former Russian minister, the son-in-law of the late Uzbek strongman Islam Karimov, and a Swiss asset manager that managed companies for the children of Azerbaijani dictator Ilham Aliyev.

The regulator also asked the bank about the daughter of the former president of Kazakhstan, who is now under criminal investigation in Switzerland for the source of tens of millions of francs she holds at Reyl Intesa Sanpolo.

In summary, the investigation revealed that the bank acted as an intermediary for suspicious funds, allowing transfers and holdings of money in ways that violated international transparency and anti-money laundering laws. More specifically, it was involved in matters related to a wide network of clients who took advantage of complex financial structures to hide their identities and the source of the funds.

In April 2023, a French court fined the bank 5.75 million euros after it admitted facilitating tax evasion for a period spanning 2009 to 2013.

The bank's chief executive, François Reyl, was also given a one-year suspended prison sentence and a €500,000 fine. The decision was part of a plea agreement by the bank that helped it avoid a lengthy public trial.

Reyl's case is another example of how private banks in Switzerland, a country historically known for banking secrecy, are facing increasing international pressure for financial transparency and cooperation in the fight against money laundering.

Written by OCCPR / Adapted from Vox News