Latest news with #RenéBenko
Yahoo
15-05-2025
- Business
- Yahoo
Julius Baer fined over lapses in AML controls
Switzerland's Financial Market Supervisory Authority (FINMA) has ordered domestic lender Julius Baer to pay more than SFr4m ($4.76m) for compliance and anti-money laundering failings in its handling of high-risk clients, the Financial Times reported. The enforcement decision, dated November 2024, has not been publicly revealed, the publication said. It focused on the bank's inability to detect or act on suspicious transactions from 2009 to 2019. The financial regulator's enforcement action against Julius Baer marks another setback for the bank as it attempts a turnaround. This follows a significant financial hit from the collapse of the Austrian property group Signa, which led to a leadership overhaul at the bank. FINMA's decision, which cites a 'serious violation' of money laundering rules, includes an order for Julius Baer to repay SFr3m in unlawfully earned profits for the benefit of the Swiss Confederation and to cover SFr1.3m in costs. Finma's investigation delved into Julius Baer's management of accounts linked to a Russian banker suspected of embezzlement and several Indian nationals, with whistleblower reports raising concerns. Despite red flags, the bank continued to manage these accounts, failing to identify and adequately respond to the associated risks. The regulator also noted issues at the bank's Monaco and Singapore branches. This decision is separate from the February enforcement proceedings regarding Julius Baer's losses related to Signa, owned by Austrian tycoon René Benko. The bank has faced previous sanctions from the Swiss regulator for failing to meet anti-money laundering obligations and risk management policies, including a ban on large acquisitions in 2020. In April, Julius Baer established a major shake-up of its organisational structure, streamlining its operations and reinforcing its strategic emphasis on client-centricity and sustainable growth. The revamp follows the establishment of the bank's Executive Board and Global Wealth Management Committee (GWMC), introduced earlier this year in February. "Julius Baer fined over lapses in AML controls" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-04-2025
- Business
- Yahoo
Austrian real-estate tycoon Benko must remain in custody, court rules
A court in Vienna ruled Monday that Austrian former real-estate investor René Benko, who is under investigation for fraud, must remain in pre-trial detention. Benko, 47, must remain in custody for at least another two months. The founder of the insolvent real estate and trading group Signa had applied for his release. However, the Vienna Regional Court refused this. The court stated that there was still strong suspicion and a risk of re-offending. He was detained in January and held in custody in Vienna. The Austrian Economic and Corruption Prosecutor's Office (WKStA) accuses the entrepreneur of concealing his personal assets in connection with the fall of his real-estate holding. He is suspected of embezzlement, fraud and bankruptcy. Investigators assume that Benko tricked investors into making contributions by pretending that a Benko family foundation would also participate in a Signa capital increase. In reality, however, they say, Benko channelled investors' money through a 'money carousel' and passed it off as his own contribution. According to the WKStA, Benko is also said to have hidden assets from authorities, creditors and insolvency administrators. The entrepreneur is also under investigation in Germany, Italy and Liechtenstein. His lawyer has so far rejected the accusations against Benko. Benko had built up a convoluted network of companies during the low-interest phase. He invested in Germany's Galeria department store group, the Berlin luxury department store KaDeWe and the Elbtower project in Hamburg. In addition to internal group problems, Signa was brought down by rising interest rates, energy prices and construction costs.
