In the picture: Bank Audi is ahead of other banks in Switzerland in terms of capital adequacy

After about 4 years had passed since the case, the Bank Audi case – Switzerland was brought back to the forefront after the “Swiss Capital Market Supervisory Authority” announced yesterday that “the Bank Audi – Switzerland unit had violated its obligations in the field of combating money laundering…” and that it, that is, the Authority, It ordered “the deduction of profits totaling 3.9 million Swiss francs ($4.34 million) and an additional capital charge of 19 million francs,” noting that “during the implementation of the procedures, the aforementioned bank cooperated with the authority and took the required measures to restore compliance with the applicable law…”

The procedures were taken under the supervision of the concerned Swiss side, and the matter was settled satisfactorily and in full response by the bank, which submitted the required documents and paid the fines imposed on it.

This process is old and dates back to the year 2020-2021, and is related to a transfer that took place through Bank Audi – Switzerland, without the bank knowing the source of this transfer or studying its merits and reasons, which the Swiss Supervisory Authority considered a violation of the established standards and the law applicable to financial transfers. Especially if the transfers are made by a “politically exposed” figure.

The first “return”…

It is worth noting here, a study prepared by the relevant Swiss authorities on the list of banks operating in Switzerland, which shows that Bank Audi – Switzerland has the largest “risk” capital among all the banks operating in Switzerland.

As stated in this study: “When it comes to capital adequacy, private institutions are mostly the ones that achieve the score. Given its high equity levels, it has above-average CET1, leverage, and liquidity coverage ratios. “Moreover, partner-led banks have the luxury of holding more capital because they do not face external pressure to develop resources from shareholders.”

In the attached table, Bank Audi’s lead over other banks operating in Switzerland appears in the degree of capital adequacy:

International banks under the microscope of fines…

Not far away, a follow-up financial source points out that “the Bank Audi case was raised “in the Lebanese way,” and it took on a character of exaggeration to the point of “scandal”! While what happened with Bank Audi – Switzerland happens with all banks in the countries of the world.”

In this context, he mentions that “the largest and most important global banks, such as GPMorgan for example but not limited to, have faced and are still facing such a situation in the financial markets, where it is recorded that they made mistakes at some stages and exceeded the permissible limit in their financial operations, which prompted the imposition of… Fines, which sometimes amount to hundreds of millions of dollars. Consequently, all banks in the world are exposed to financial fines for operations that are considered to have exceeded the required limit within applicable laws.”

For example, but not limited to, the source adds, the “Consumer Financial Protection Board” in the United States announced on July 13, 2023, that “Bank of America” will pay a total of $250 million “due to its illegal imposition of fees, withholding credit card rewards, and opening… Fake accounts.”

The US and British financial oversight bodies also imposed fines estimated at $3.4 billion on five international banks on charges of failing to prevent their dealers from attempting to manipulate the Forex exchange market.

The record fine imposed by the US Commodity Futures Trading Commission and the British Supervisory Authority also included the American banks JPMorgan Chase and Citibank, the British Royal Bank of Scotland and HSBC, and the Swiss UBS bank. These banks will pay the American committee about $1.4 billion, and the British Supervisory Authority about $1.75 billion.


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