Swiss bank Julius Baer to pay $79.7 million in FIFA corruption settlement

imageStock Markets24 minutes ago (May 27, 2021 02:27PM ET)

(C) Reuters. FILE PHOTO: The logo of Swiss private bank Julius Baer is seen at a branch office in Zurich, Switzerland February 1, 2021. REUTERS/Arnd Wiegmann/File Photo

By Jonathan Stempel

NEW YORK (Reuters) -The Swiss bank Julius Baer has agreed to pay $79.7 million in a settlement with the U.S. Department of Justice after being implicated in a sprawling corruption probe surrounding FIFA, the world’s soccer governing body.

Julius Baer entered a three-year deferred prosecution agreement to resolve accusations it engaged in a money laundering conspiracy.

It will pay a $43.3 million criminal fine and a $36.4 million forfeiture, and not face further punishment if it complies with the agreement’s terms.

The agreement was accepted by U.S. District Judge Pamela Chen in Brooklyn, New York, after Julius Baer’s general counsel pleaded not guilty on the bank’s behalf.

Julius Baer had previously set aside funds to cover the payout.

Switzerland’s third-largest listed bank has said it has cooperated with the Justice Department since 2015, upgraded its compliance controls and dismissed some clients.

The Justice Department unveiled the FIFA probe in April 2015.

More than 40 defendants, including soccer and marketing executives, were charged, and at least 30 have pleaded guilty.

In November, former Julius Baer banker Jorge Arzuaga was sentenced to three years probation after pleading guilty to a conspiracy charge.

Arzuaga had been accused of helping an Argentine sports marketing executive pay bribes to the president of Argentina’s soccer federation, who was a FIFA vice president.

The federation’s president at the time, Julio Grondona, died in 2014.

Swiss financial regulator FINMA has also imposed penalties for Julius Baer’s anti-money laundering shortfalls, ordering the bank to improve its controls and appoint an auditor, and reprimanding two former chief executives.

FINMA lifted a ban on Julius Baer making large acquisitions in March.

Swiss bank Julius Baer to pay $79.7 million in FIFA corruption settlement

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.