(Al Jomhoriya)-13/10/2026

Money Laundering, Tax Evasion and the Secrets of a Diplomatic Double Role

Behind the elegant façades of Swiss banks, where secrecy is sold as a guarantee and trust as a legacy, documents reveal a different record: deliberate assistance in concealing assets, the laundering of bribes, organisational failings that allowed the proceeds of corruption to flow through accounts, and regulatory measures that failed to prevent further breaches.

In the cases of Julius Baer and Pictet, there is no need to manufacture a scandal from rumour. The most damning findings bear the authority of the US Department of Justice, Swiss prosecutors and financial regulators. Amid admissions in settlements, criminal convictions and administrative rulings, a question emerges that goes beyond the size of the fines: what happens inside a banking institution when suspicions and violations recur, time after time?

The details tell the story.

Tax Evasion: Secrecy in the Service of Concealment

On 4 February 2016, the US Department of Justice announced that Julius Baer had admitted knowingly helping American clients evade their tax obligations and conceal assets offshore. This was not simply a case of account holders failing to declare their holdings; it concerned the bank’s own involvement in facilitating concealment.

The case resulted in a deferred prosecution agreement and a $547.25 million settlement paid by the bank. Two former bank advisers also pleaded guilty in court in connection with the same case. The distinction between institutional and individual responsibility is clear: a bank’s settlement does not preclude personal accountability where the grounds for it are established.

On 4 December 2023, the department announced that Pictet had admitted conspiring with US taxpayers to conceal more than $5.6 billion in 1,637 accounts. The admitted conduct covered the period from 2008 to 2014.

The department documented the mechanisms used: offshore entities, coded accounts, insurance arrangements and transfers presented as sham gifts to non-Americans, while the American owners retained effective control of the funds. These details show how manipulation and fraud through changes to an account’s nominal ownership could, in some cases, keep its true owner out of the tax authorities’ sight.

The settlement totalled $122,959,391, comprising tax restitution, disgorgement of fees earned by the bank and a financial penalty. The department took the bank’s admission, cooperation and remedial measures into account, but required it to continue cooperating and making disclosures.

$255 Million Reopens the Questions

On 21 March 2024, Ron Wyden, then chairman of the US Senate Finance Committee, announced an investigation into whether Pictet had continued to facilitate tax evasion.

The committee said records it had reviewed showed that $255 million had been transferred from an American billionaire’s accounts into accounts held in the name of someone close to him, with indications that he retained effective control of the money. The question therefore shifted from the size of the settlement to its scope: had it covered the full extent of the conduct?

The suspicion raised by this congressional investigation shows that signing a settlement did not resolve questions about the beneficial owner behind the registered name, or about possible continuing manipulation at the bank.

From Secret Accounts to Football Bribes

On 27 May 2021, Julius Baer admitted in US court proceedings to conspiring to launder more than $36 million in bribes linked to officials at FIFA and other football federations, as part of arrangements to secure broadcasting rights to matches.

The bank agreed to pay $79,688,400 in a fine and forfeiture under a deferred prosecution agreement. US prosecutors described failures by its compliance department in the face of clear money-laundering red flags. The scandal thus extended beyond sports officials and the companies making the payments: the money needed a financial institution to move through, and controls failed to stop it.

In February 2020, the Swiss Financial Market Supervisory Authority, FINMA, had announced systemic failings at the bank in connection with FIFA and Venezuela’s state oil company, PDVSA. Of 70 business relationships selected for examination on a risk-based basis, almost all showed breaches, as did the vast majority of more than 150 transactions in the sample. This was a high-risk supervisory sample, not a survey of the bank’s entire client base. Even so, it demonstrated the breadth of the deficiencies in the cases examined.

Pictet and “Lava Jato”: A Final Conviction

On 17 June 2025, Switzerland’s Office of the Attorney General announced the conviction of the bank and a former relationship manager under a summary penalty order that became final after both parties stated that they would not challenge it.

The investigation established that the employee had approved 54 transfers totalling more than $4.1 million between June 2010 and May 2013. The money came from an offshore company’s account whose beneficial owner was a Petrobras employee, and originated in corrupt payments.

The employee received a suspended six-month prison sentence. The bank was fined two million Swiss francs for organisational deficiencies that had enabled aggravated money laundering, particularly in account risk classification and transaction monitoring.

The separate line of inquiry into suspected complicity in bribery was closed because the elements of that offence had not been established. The bank’s cooperation and reforms were also taken into account. These limits do not diminish the established conviction; they define precisely what was proved and what was not.

When Rules Become Subject to Exceptions

On 29 September 2026, FINMA announced the conclusion of its fifth enforcement proceeding against Julius Baer in less than a decade, concerning lending and business relationships involving two Russian politically exposed persons.

It disclosed a particularly telling finding: an exception to know-your-customer rules had been approved in 2019 on an employee’s recommendation and had not been reviewed despite the employee’s close personal ties to the client’s family. In the lending case, the regulator documented commissions and bonuses worth millions, alongside a €60 million pass-through transaction that left the loan portfolio reported at the end of 2022 out of step with the underlying economic reality.

FINMA ordered the disgorgement of approximately 10 million Swiss francs in profits, imposed an additional capital requirement of 250 million Swiss francs and required reporting through 2032. It also opened proceedings against three former employees.

At the same time, it acknowledged reforms and management changes and eased certain restrictions. The decision was not legally final when announced.

In its official response, the bank said it had exited the private debt business and rebuilt its risk, compliance and governance framework under renewed management. The test of those commitments lies in future results: acknowledging reforms does not erase the findings that made them necessary.

Regulatory Failures Across Borders

In Britain, the Financial Conduct Authority (FCA) fined Julius Baer International £18,022,500 in 2022. The case concerned business referral arrangements and foreign exchange transactions at non-market rates, under which an employee of companies in the Yukos group received commissions of approximately $3 million.

The company’s penalty remains separate from the position of the three individuals who challenged the decisions against them. In 2023, the relevant tribunal rejected the findings that they had lacked integrity, and the FCA decided to take no further action against them.

In Singapore, the Monetary Authority of Singapore (MAS) announced on 4 July 2025 that it had fined Julius Baer’s branch S$2.4 million as part of action against nine financial institutions. It identified shortcomings in customer risk assessments, verification of sources of wealth and reviews of transactions that the monitoring systems themselves had flagged as suspicious.

As for Pictet Overseas Inc., the Financial Industry Regulatory Authority (FINRA) announced on 20 May 2026 that it had imposed a $610,000 fine for supervisory and anti-money-laundering violations. The firm had executed approximately $300 million in low-priced stock transactions between February 2022 and March 2023, while deficiencies in its supervisory programme persisted despite an earlier warning in 2021.

That transaction total does not represent money proven to have been laundered. The failure to address deficiencies after a warning, however, is an established regulatory finding. The settlement was accepted without admitting or denying the allegations.

Monaco: Behind the Fine, More Troubling Findings

In a decision issued on 25 August 2026 and published on 4 September, Monaco’s Financial Security Authority (AMSF) fined Julius Baer Wealth Management (Monaco) €1.5 million.

The decision documented a delay of 393 days between the emergence of suspicion and the filing of one suspicious transaction report. In another case, reporting was delayed by 239 days and 216 days following two transactions. The authority found broader deficiencies in identifying, assessing and promptly reporting suspicions.

Those figures capture the central accountability question facing the institution: what is the value of a system that detects suspicion if it delays notifying the authority able to act?

In a separate case involving Bank Julius Baer (Monaco), the Commission for the Control of Financial Activities (CCAF) issued a reprimand on 22 July 2024 over inadequate security and internal control arrangements.

The decision revealed that the bank had compensated a client £37.8 million in a case involving ten transactions totalling £135 million. The bank said it had fallen victim to an employee’s actions in circumventing its procedures and had filed a criminal complaint.

Here lies another cost of control failures: tens of millions paid in compensation to a client, alongside sanctions imposed by the authorities. The bank and the wealth management company nevertheless remain separate legal entities within the group.

Alain Ucari Faces Questions of Transparency

One prominent name in Monaco’s banking sector is Alain Ucari, who became chief executive of Julius Baer in Monaco in 2015 and chairman of its board in 2016, before moving to Pictet. Pictet’s official website identifies him as head of its Monaco office and the executive responsible for wealth management services in the principality.

Under a sovereign ordinance dated 4 December 2019, he was authorised to serve as honorary consul of South Korea. Alberto Henriques Pascual, who succeeded him as chief executive of Julius Baer in Monaco, was likewise authorised to serve as honorary consul of Brazil in December 2024.

Combining a banking position with a consular role warrants direct questions about the safeguards separating the two: what conflict-of-interest rules apply? How are data and communications kept separate? Who reviews the use of relationships made possible by the consular position? What controls ensure that client service does not overlap with official representation?

Ucari’s professional standing makes these legitimate questions.

In the context of scrutiny of governance, Inside Paradeplatz, in a report published on 5 October 2026, raised questions about the role of Albert Henriques, chief executive of Julius Baer in Monaco, in his son’s recruitment within the group. According to the report, the son began as an intern in Monaco before moving to Geneva, where he later took up a position as an investment adviser.

The Lebanese Connection: Tracing the True Owner of the Money

An investigation by the Swiss organisation Public Eye, drawing on investigative documents, reported that the Panamanian company West Lake Commercial had received more than $7 million from Forry Associates, and that its account was held at Julius Baer in Zurich. The report attributed to Swiss investigators the identification of Riad Salameh as the company’s beneficial owner.

The Swiss press also covered a 2023 ruling on a request to release money for legal expenses from frozen accounts held at the bank by Salamander Trust and Crossland Limited. These facts warrant tracing the movement of funds and the ownership of accounts. They do not, in themselves, constitute a conviction of the bank in the Salameh case, nor do they prove that every sum linked to him came from Lebanese depositors’ funds.

An Account No Cheque Can Settle

The cases differ, responsibilities vary, and every institution and individual retains the right to respond and defend themselves. Yet the established facts demand an answer to a question that settlements cannot resolve: how do controls within institutions possessing such expertise and resources become barriers that can be bypassed, or whose enforcement can be delayed?

Meaningful accountability begins with the decisions: who approved? Who knew? Who ignored the warning? Who had the authority to intervene and failed to use it? Reform is measured by its ability to prevent recurrence and hold those responsible to account, not by the number of published pledges.

The two banks’ balance sheets may absorb another fine. Trust cannot be restored by a cheque, a public relations statement or a banking or consular title.

When the price of a violation becomes a budget item, the question grows sharper: has the institution been punished in a way that changes its behaviour, or has it merely paid the cost of carrying on?

That is the true reckoning: responsibility that no settlement can erase, and trust that can be regained only when respect for the law outweighs the lure of money.

Al Joumhouria will pursue this investigation to its conclusion, examining both banks and the personal responsibilities of those who manage them, to uncover further facts, documents and investigative findings. It will place its findings before the public and put the evidence and questions to those concerned, on the principle that responsibility does not end with the institution’s name: it extends to every individual whose responsibility for violations is established.