Swiss private bank Julius Baer Group has agreed to a settlement in principle with the US Department of Justice (DOJ) to resolve allegations over corruption linked to world soccer federation FIFA.
The settlement includes a three-year deferred prosecution agreement along with financial compensation.
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The private bank said that it has set aside a provision of $79.7m to cover the financial penalties in relation to the case. This amount will reflect in its 2020 financial results.
Julius Baer found itself in hot waters after accepting money from corrupt FIFA sources. The corruption is said to have involved officials and affiliates of FIFA as well as associated sports media and marketing firms.
The group said that it has been cooperating with the DOJ since 2015 in the investigation of the case and that in 2016, it rolled out a comprehensive programme to address the loopholes identified.
Among the measures adopted include the re-documentation of all customer relationships and abandonment of some customer relationships and business areas that failed to comply with the bank’s risk requirements.
Other legal tussles
Julius Baer has been entangled in several legal issues lately.
In February this year, the Swiss financial regulator FINMA rebuked Julius Baer for serious failings in its anti-money laundering (AML) controls between 2009 and 2018 and barred it from making any major acquisition until it implements remedial measures.
Earlier this month, it was reported that Julius Baer was eyeing new acquisitions as it expects the restrictions imposed on the company to be withdrawn next year.
In September this year, the bank agreed to pay $162m to resolve a dispute over assets with German agency Bundesanstalt für vereinigungsbedingte Sonderaufgaben (BvS).
