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Former Swiss Bank CEO Acquitted in Gulf Money-Laundering Case

Former Swiss Bank CEO Acquitted in Gulf Money-Laundering Case

The former boss of a defunct Zurich bank was acquitted of laundering 133 million euros ($150 million) for a Gulf businessman convicted in the 1MDB scandal.

Eduardo Leemann, the ex-chief executive officer of Falcon Bank, was found not guilty of laundering illicit proceeds for Khadem Al-Qubaisi between 2012 and 2016, Switzerland’s Federal Criminal Court ruled on Wednesday

A lawyer for Leemann, who had always denied wrongdoing, wasn’t immediately available for comment. 

Falcon Bank, which has since shut down amid controversies, was found guilty for having allowed money-laundering to occur because it lacked proper controls and was fined 3.5 million Swiss francs ($3.8 million).

Falcon Bank “was in a position to take all the measures required by law and good practice” in order to ensure independent compliance and combat money-laundering, the court said in its statement. “This offense could very possibly have been prevented if all reasonable and necessary organizational measures had been taken.” 

While prosecutors had said the money wasn’t embezzled or misappropriated from 1MDB, Leemann’s September trial put the spotlight back on how they believed Zurich-based Falcon Bank greased flows of cash for Al-Qubaisi, a key player in the scandal that engulfed 1Malaysia Development Berhad -- an investment fund originally intended to develop the southeast Asian nation’s economy.

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