A Swiss court has fined private bank Lombard Odier 3 million Swiss francs (approximately $3.68 million) in a case concerning failures related to the prevention of money laundering. At the same time, the court discontinued proceedings against Gulnara Karimova — the daughter of Uzbekistan's former president Islam Karimov.
WHAT DECISION THE COURT MADE
According to Reuters, the court found that Lombard Odier had not taken all reasonable and necessary organisational measures to prevent money laundering. In addition to the fine of 3 million Swiss francs, the court ordered the confiscation of assets totalling more than 400 million Swiss francs.
A former client relationship manager at the bank, identified in court documents as C., received a suspended prison sentence of 24 months.
WHAT THE CASE INVOLVED
According to the Swiss prosecutor's office, Gulnara Karimova received bribes and led a criminal organisation known as "The Office", through which hundreds of millions of dollars were channelled into bank accounts in Switzerland between 2005 and 2013.
The prosecution also alleged that Lombard Odier and a former employee helped conceal funds believed by investigators to be linked to Karimova's alleged criminal activity. The trial began in April 2026.
THE BANK'S POSITION AND THE DECISION ON KARIMOVA
Lombard Odier stated that the initial investigation began after the bank itself reported its suspicions to the Swiss authorities as early as 2012. The bank also emphasised that it had internal anti-money laundering procedures in place at the time and announced its intention to appeal the court's decision.
The court discontinued proceedings against Gulnara Karimova, stating there is no prospect of her release or extradition to Switzerland before the statute of limitations expires.
Proceedings were also discontinued against another defendant, identified as B., who resides in Russia. The court stated that he was unable to travel to Switzerland for reasons beyond his control.
WHAT OTHER CIRCUMSTANCES THE COURT NOTED
The court stated that the penalties for Lombard Odier and the former employee were mitigated given the length of time that had passed since the alleged events. Furthermore, charges related to events before July 2011 were dropped due to the statute of limitations having expired.
It is noted that Gulnara Karimova was taken into custody in Uzbekistan in 2019 after violating the terms of house arrest, which had been imposed following her conviction on charges of embezzlement and extortion.
CONTEXT
The name of Gulnara Karimova has previously appeared in other international proceedings related to the telecommunications sector. Specifically, court documents from a legal dispute between businessman Mohamed Amersi and the BBC mention the case of the company TeliaSonera (later Telia).
According to the court materials, the BBC cited investigations into Telia's dealings in Central Asian countries. These alleged that in 2012, the company was accused of transferring $331 million to Gulnara Karimova, daughter of Uzbekistan's former president Islam Karimov. Although Telia's management was later acquitted by a Swedish court, US authorities imposed a fine of $965 million on the company.
