Swiss Prosecutor Convicts Pictet and Former Relationship Manager

Swiss Prosecutor Convicts Pictet and Former Relationship Manager

The legal fallout from the Brazilian Petrobras corruption scandal, known as «Lava Jato» has taken another step forward. Switzerland’s Office of the Attorney General has issued criminal penalty orders against the Swiss private bank Pictet and one of its former relationship managers.

According to a statement released on Tuesday, Switzerland’s Office of the Attorney General (OAG) sentenced a former relationship manager of Swiss private bank Pictet to a suspended six-month prison sentence for aggravated money laundering. The bank itself has been fined 2 million francs for failing to take all necessary and reasonable organisational measures to prevent such a crime.

The criminal investigation revealed that between June 2010 and May 2013, over $4.1 million in bribe money was transferred out of an account held by a Brazilian public official at Pictet in an attempt to conceal its criminal origin.

Part of the Larger Lava Jato Probe

The convictions form part of a series of criminal proceedings initiated by the OAG in connection with the international corruption scandal «Lava Jato,» which originated largely in Brazil.

The investigation into Pictet, one of its former wealth managers, and unknown third parties was launched in December 2021. The suspicion centred on aiding and abetting the bribery of foreign public officials and aggravated money laundering.

The wealth manager, who worked in the bank’s Wealth Management division and had been responsible for the Brazilian market since January 2013, was found guilty of aggravated money laundering through a criminal penalty order. He received a suspended prison sentence of six months, with a probationary period of two years.

Organisational Failures 

Pictet was found guilty of violating Article 102(2) of the Swiss Criminal Code in connection with aggravated money laundering. The investigation concluded that the offence was made possible due to organisational shortcomings within the bank.

Criminal Orders Are Final

In determining the penalties, the OAG took into account the time that had elapsed since the offences were committed. It also noted the bank’s «very good cooperation during the proceedings and the corrective organisational measures taken following the Petrobras scandal».

Both the former wealth manager and Pictet have waived their right to appeal the criminal penalty orders and the partial discontinuation of the criminal proceedings. As a result, the orders are now legally binding.