FINMA concludes Julius Baer enforcement proceeding with continuing measures

FINMA concluded combined proceedings concerning Julius Baer bank’s private-debt lending and relationships connected with two Russian politically exposed persons. The regulator found serious breaches of risk-management and anti-money-laundering requirements. It recognised remedial actions, including discontinuing private-debt business, stronger controls and leadership changes, and lifted or relaxed some earlier restrictions. Continuing measures include reporting on risk and compliance culture through 2032 and CHF 250 million of additional capital until the required client-asset divestment is completed. Shareholder payments require FINMA’s advance approval. The regulator said the ruling was not yet legally binding and separately initiated proceedings against three former employees. The findings concern prior conduct; FINMA distinguished the current management team, appointed after the relevant events.