Swiss court fines Lombard Odier 3 million francs for failing to prevent Uzbek money laundering
Switzerland's Federal Criminal Court on Monday imposed a 3 million franc fine on the Geneva private bank and ordered the confiscation of more than 400 million francs in assets tied to the daughter of Uzbekistan's late president.
Verdict in Bellinzona
The Swiss Federal Criminal Court handed down its ruling on Monday 27 July 2026, fining Geneva-based private bank Lombard Odier 3 million Swiss francs ($3.7 million) for organisational deficiencies that allowed a money-laundering ring linked to Uzbek elites to channel hundreds of millions of dollars through its accounts. A former client relationship manager, identified in court only as C., received a suspended 24-month prison sentence for qualified money laundering. The court also ordered the forfeiture of over 400 million francs in assets held in Switzerland.
- Gulnara Karimova's "The Office" allegedly channels telecom bribes into Swiss accounts
- Trial opens at the Federal Criminal Court in Bellinzona
- Three-week trial hearings take place
- Court convicts Lombard Odier, sentences ex-manager, discontinues Karimova proceedings, and orders CHF 400 mn confiscation
Karimova's "Office"
Gulnara Karimova, daughter of the late Uzbek president Islam Karimov, was accused of heading a criminal organisation known as "The Office" that allegedly funnelled bribes from foreign telecommunications companies into Swiss accounts between 2005 and 2013. Prosecutors said she exploited her influence over government decisions to demand kickbacks in exchange for market access. The funds, totalling hundreds of millions of euros and dollars, were moved through opaque transactions at multiple banks, including Lombard Odier.
The ex-manager was found to have accepted credits of over $120 million and debits of more than $20 million despite signals of corruption. The court noted he had satisfied himself with superficial checks even when red flags about the Uzbek telecom sector were apparent.
Karimova case discontinued
Proceedings against Karimova were halted because of a permanent procedural obstacle. She has been imprisoned in Uzbekistan for twelve years and is serving a sentence that runs until December 2028. Uzbek authorities refuse to let her leave the country, and the statute of limitations for the alleged offences would expire before a first-instance verdict could be reached. Karimova has denied all wrongdoing. The case against her right-hand man, who lives in exile in Russia and is subject to international arrest warrants, was also discontinued.
The bank's organisational failures
The court found Lombard Odier responsible for failing to adopt all necessary and reasonable measures to prevent the money laundering committed by its employee. The penalty of 3 million francs fell below the 4 million sought by the prosecution. Lombard Odier announced it would appeal, maintaining that its internal controls and anti-money laundering procedures were robust at the time.
Asset recovery
Swiss authorities confiscated more than 400 million francs in assets, including a Mirabaud bank account belonging to Karimova and a luxury villa in Cologny. Around 340 million francs had already been the subject of restitution agreements, while some 400 million remain under sequestration.
