Swiss Private Bank J. Safra Sarasin is guilty of aggravated money laundering.

In 2018, Swiss courts initiated a criminal investigation against Bank J. Safra Sarasin, a Basel-based bank, one of its former asset managers, and unidentified individuals for “suspected complicity in the bribery of foreign public officials and aggravated money laundering” committed between November 2011 and July 2014.

On August 22, 2025, it was reported that the Office of the Attorney General of Switzerland had fined private bank J. Safra Sarasin CHF3.5 million ($4.3 million) for aggravated money laundering. Also, A former bank employee received a six-month suspended prison sentence in the same case.

J. Safra Sarasin also paid a settlement of CHF16 million to the Brazilian oil giant Petrobras, the plaintiff in the case.

This conviction is linked to the international corruption case known as “Lava Jato”, involving Petrobras

Here's a detailed summary of the Swiss Office of the Attorney General’s (OAG) conviction of Banque J. Safra Sarasin SA in connection with the Petrobras “Lava Jato” corruption scandal:

Key Facts of the Case

• Conviction Date: 22 August 2025
• Bank Involved: Banque J. Safra Sarasin SA (Swiss private bank)
• Fine Imposed: CHF 3.5 million (~€3.64 million)
• Settlement Paid to Petrobras: CHF 16 million
• Timeframe of Offences: November 2011 – May 2014
• Total Bribe Amounts Processed: Approx. USD 71 million
• USD 42.5 million successfully transferred
• USD 28.5 million blocked by recipient banks

Legal Findings

• The bank was found guilty under Article 102 para. 2 of the Swiss Criminal Code, which allows for corporate liability when organisational failings enable criminal acts.
• The offences involved aggravated money laundering (Article 305 bis SCC), not direct bribery, as the bribery charges were dropped due to insufficient evidence of intent.
• A former relationship manager was also convicted and received a six-month suspended custodial sentence with a two-year probation period for laundering USD 29.2 million.

Modus Operandi

• The bank’s accounts were used to channel bribes from around ten companies in the oil and construction sectors to Petrobras executives, who were also clients of the bank.
• These payments were intended to influence contract awards and negotiations with Petrobras and its subsidiaries.
• The funds were moved through complex structures, including shell companies and correspondent banks, to obscure their origins.

Compliance Failures

• The bank lacked adequate internal controls, allowing illicit funds to flow through its systems.
• The case highlighted systemic weaknesses, such as poor client onboarding, insufficient due diligence, and ineffective transaction monitoring.
• The OAG emphasised that organisational disarray, not just individual misconduct, was at the heart of the violations.

Broader Implications

• This case reinforces the Swiss authorities’ commitment to holding financial institutions accountable under corporate criminal liability laws.
• It also underscores the importance of robust compliance frameworks, especially when dealing with politically exposed persons (PEPs) and high-risk sectors like oil and construction.
• The conviction is part of a broader crackdown, with other banks like Pictet and PKB Privatbank also fined in related cases.

References

• Banque J. Safra Sarasin SA and one of its former relationship managers ...https://www.geo.admin.ch/en/newnsb/2y8oBsJ36EJLYA723v50c
• Safra Sarasin Faces Heavy Blow With CHF 3.5 Million Fine Over Money ...https://fincrimecentral.com/swiss-bank-safra-sarasin-money-laundering-case/
• Safra Sarasin, private bank and former asset manager, was sentenced https://www.swissinfo.ch/eng/swiss-politics/safra-sarasin-private-bank-and-former-asset-manager-sentenced/89880021.