Swiss wealth management firm Julius Baer has agreed to pay $79.7m (£56.3m, €65.3m) in penalties to the US department of justice (DOJ).
The private bank has also entered into a three-year deferred prosecution agreement with the department, alongside the penalties.
The fines related to a money laundering scandal where the firm “conspired to launder over $36m in bribes through the US to soccer officials with the Fédération Internationale de Football Association (Fifa) and other soccer federations, in furtherance of a scheme in which sports marketing companied bribed soccer officials in exchange for broadcasting rights to soccer matches”, the DOJ said.
The $79.7m penalty consists of a $43.3m fine and a forfeiture of $36.4m to resolve the investigation into Julius Baer’s involvement in the money laundering conspiracy.
The wealth manager said in a statement on the settlement: “Julius Baer welcomes the final resolution of this legacy matter. This marks another step in Julius Baer’s continued efforts to pursue the closure of remaining regulatory and legal matters in cooperation with the relevant authorities.”
‘Pursued the profit’
Nicholas McQuaid, acting assistant attorney general of the Justice Department’s criminal division, said: “[The] resolution sends a strong message to all banks and other financial institutions that if they knowingly misuse our financial system to hide their clients’ criminal proceeds or to promote a corrupt scheme, they will be held to account.
“From the time of the first Fifa-related indictment, the department has promised to hold accountable the financial institutions involved in this global criminal scheme. We are delivering on that promise.”
William Sweeney, assistant director-in-charge of the FBI’s New York field office, added: “Bank Julius Baer pursued the profit it could make laundering corrupt funds derived from a criminal scheme run by powerful Fifa officials.
“Their behaviour has earned them the equivalent of a red card, and the money the bank now owes the US government is more than double what it admits to laundering. The FBI operates globally with our international partners, and our message to those who may be looking to profit from similar schemes – the penalties for this type of play are steep. Stay within the rules.”
