A Swiss federal court convicted Lombard Odier for failing to stop a money-laundering scheme running through its Geneva branch.
The case centers on a former account manager identified only as C. under Swiss privacy rules. He joined Lombard Odier in 2008 and over the next four years opened nine accounts that received money from corruption tied to Uzbekistan.
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According to the court, compliance staff possessed indications that some funds in C.'s accounts came from corrupt activities. However, the court found that the bank failed to implement adequate steps to guarantee that additional investigations into the source and business rationale of those funds were carried out and properly recorded.
Lombard Odier stated that it disputes the verdict and intends to appeal. In accordance with Swiss legal procedure, the ruling on Monday is not final until all appeal options are used up. The bank pointed out that the attorney general's office never accused Lombard Odier of intentionally engaging in money laundering. The bank further mentioned that the matter concerns events from over fifteen years ago, and noted that it had initially reported its concerns to Swiss authorities in 2012.
The case is part of a broader crackdown on illicit financial flows through Switzerland, which has long been a hub for offshore wealth. The $400 million in assets ordered confiscated underscores the magnitude of the scheme, which prosecutors say involved bribes and kickbacks from telecom deals in Uzbekistan.
According to prosecutors, C. was acquainted with Karimova and other individuals involved in 'The Office' scam prior to his employment at the bank, which came through his work with a fund run by Karimova. Following his start at the bank in 2008, he strengthened those connections and created nine accounts designed to accept money from the fraud, as per the indictment. In an effort to hide his activities, the banker fabricated beneficial owners for the accounts and attempted to represent one of the shell companies from "The Office" as an independent business, prosecutors claimed.
The court highlighted that C. only performed cursory checks on the money's sources and neglected to determine the source and business purpose of the funds. C. was found guilty of aggravated money laundering, the court stated.
The person prosecutors believe was the ringleader is Gulnara Karimova, an Uzbek businesswoman and former diplomat. In 2023, Swiss prosecutors indicted her for a bribery scheme, accusing her of receiving tens of millions from telecom companies in return for valuable Uzbekistan contracts. However, in April 2026, the Swiss Federal Criminal Court threw out her case, ruling that Karimova's imprisonment in Uzbekistan meant she would probably never attend trial, making a fair proceeding unattainable.
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