A worker cleans the logo of Bank Audi in Beirut. It is one of the largest lenders in Lebanon. Reuters
A worker cleans the logo of Bank Audi in Beirut. It is one of the largest lenders in Lebanon. Reuters
A worker cleans the logo of Bank Audi in Beirut. It is one of the largest lenders in Lebanon. Reuters
A worker cleans the logo of Bank Audi in Beirut. It is one of the largest lenders in Lebanon. Reuters

Swiss regulator finds subsidiary of Lebanese bank breached money laundering obligations


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A Swiss financial regulator has found that a subsidiary of one of Lebanon's largest banks, which has been investigated over its ties to Lebanon's former central bank governor Riad Salameh, did not do enough to prevent money laundering.

Banque Audi (Suisse) SA, a subsidiary of Bank Audi Group, one of the largest lenders in Lebanon, “breached its obligations in the prevention of money laundering” and “seriously violated financial market law”, Swiss financial regulator Finma said on Monday.

The bank is one of several suspected of sheltering hundreds of millions of dollars allegedly embezzled from the Lebanese economy by Mr Salameh, who is being investigated in Lebanon and at least five European countries.

France and Germany have issued warrants for his arrest as part of their investigations while the US and the UK have imposed sanctions on him for “abusing his position of power”.

Monday's findings conclude a 2022 enforcement proceeding initiated by Finma that was launched after an on-site inspection in 2021 uncovered significant deficiencies in the bank's anti-money laundering measures.

“Finma carried out investigations at over a dozen banks and opened enforcement proceedings in two cases in the Lebanon context,” Finma spokeswoman Patrizia Bickel told The National. “The proceeding against Banque Audi, which has now been concluded, is one of them.”

Finma claimed the bank had not adequately “clarified the origin of assets in high-risk client” and failed to report suspicious transactions to the Money Laundering Reporting Office in Switzerland.

“In doing so, the bank was in serious violation of anti-money laundering regulations,” the agency said.

In the Banque Audi case, Finma ordered the confiscation of 3.9 million Swiss francs ($4.3 million) in profit and a capital surcharge of 19 million francs.

“In the course of the proceedings, the bank has co-operated with Finma and took measures to restore compliance with the law,” the regulator said.

The bank did not respond to The National's request for comment.

'Unprecedented' measures

Finma said it reviewed Banque Audi's relationships with politically exposed people from various countries, but declined to comment on those involved.

In some cases, “there were press articles referring to the possibly unlawfully acquired assets of these persons”, the agency simply said.

In 2022, seven Swiss and Lebanese groups lodged a complaint to Finma requesting an investigation into several banks tied to Mr Salameh. The banks in question included Banque Audi.

The groups allege that Bank Audi, Zurich-based Julius Baer and BankMed Suisse, the Swiss subsidiary of another Lebanese bank, helped the embattled former bank governor to shelter millions of dollars in embezzled funds.

Mr Salameh is alleged to have embezzled more than $330 million from Lebanon's central bank through a contract awarded in 2002 to Forry Associates Ltd, his brother's company.

Judicial documents show a significant portion of the money allegedly diverted from the central bank was transferred to banking institutions in Switzerland to finance the acquisition of luxury properties in Europe.

The Swiss public prosecutor, which has opened an investigation into Mr Salameh over allegations of money laundering, is looking into Banque Audi for its involvement in a suspicious transfer of $153 million in treasury bonds by the former central bank chief.

“The Finma measures are definitely related to our complaint,” Zena Wakim, a lawyer and president of Swiss foundation Accountability Now.

“The severity of the measures taken by Finma is unprecedented, asset confiscation remains an exceptional measure and we hope that the leaders of these banks are now personally held accountable for facilitating this widespread corruption. We continue our fight against impunity outside of Lebanon.”

Lawyer Fouad Debs of the Depositors’ Union, one of the Lebanese plaintiffs that asked Finma to investigate the banks, told The National the move was “a step in the right direction”.

“It shows that Lebanese banks have not been always compliant in terms of money laundering and that they have been complicit in money laundering, which they've always denied,” he said.

Despite the ruling, he expects little change within Lebanon.

“Lebanese banking regulatory bodies, the judicial system, the security apparatus – all are under the control of the ruling class. This means that nothing will move forward here,” he said.

The specs
Engine: 2.4-litre 4-cylinder

Transmission: CVT auto

Power: 181bhp

Torque: 244Nm

Price: Dh122,900 

Your Guide to the Home
  • Level 1 has a valet service if you choose not to park in the basement level. This level houses all the kitchenware, including covetable brand French Bull, along with a wide array of outdoor furnishings, lamps and lighting solutions, textiles like curtains, towels, cushions and bedding, and plenty of other home accessories.
  • Level 2 features curated inspiration zones and solutions for bedrooms, living rooms and dining spaces. This is also where you’d go to customise your sofas and beds, and pick and choose from more than a dozen mattress options.
  • Level 3 features The Home’s “man cave” set-up and a display of industrial and rustic furnishings. This level also has a mother’s room, a play area for children with staff to watch over the kids, furniture for nurseries and children’s rooms, and the store’s design studio.
     
The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Ticket prices
  • Golden circle - Dh995
  • Floor Standing - Dh495
  • Lower Bowl Platinum - Dh95
  • Lower Bowl premium - Dh795
  • Lower Bowl Plus - Dh695
  • Lower Bowl Standard- Dh595
  • Upper Bowl Premium - Dh395
  • Upper Bowl standard - Dh295
Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Scores in brief:

Boost Defenders 205-5 in 20 overs
(Colin Ingram 84 not out, Cameron Delport 36, William Somerville 2-28)
bt Auckland Aces 170 for 5 in 20 overs
(Rob O’Donnell 67 not out, Kyle Abbott 3-21).

if you go

The flights

Emirates offer flights to Buenos Aires from Dubai, via Rio De Janeiro from around Dh6,300. emirates.com

Seeing the games

Tangol sell experiences across South America and generally have good access to tickets for most of the big teams in Buenos Aires: Boca Juniors, River Plate, and Independiente. Prices from Dh550 and include pick up and drop off from your hotel in the city. tangol.com

 

Staying there

Tangol will pick up tourists from any hotel in Buenos Aires, but after the intensity of the game, the Faena makes for tranquil, upmarket accommodation. Doubles from Dh1,110. faena.com

 

Full list of brands available for Instagram Checkout

Adidas @adidaswomen

Anastasia Beverly Hills @anastasiabeverlyhills

Balmain @balmain

Burberry @burberry

ColourPop @colourpopcosmetics

Dior @dior

H&M @hm

Huda Beauty @hudabeautyshop

KKW @kkwbeauty

Kylie Cosmetics @kyliecosmetics

MAC Cosmetics @maccosmetics

Michael Kors @michaelkors

NARS @narsissist

Nike @niketraining & @nikewomen

NYX Cosmetics @nyxcosmetics

Oscar de la Renta @oscardelarenta

Ouai Hair @theouai

Outdoor Voices @outdoorvoices

Prada @prada

Revolve @revolve

Uniqlo @uniqlo

Warby Parker @warbyparker

Zara @zara

Coming soon

Torno Subito by Massimo Bottura

When the W Dubai – The Palm hotel opens at the end of this year, one of the highlights will be Massimo Bottura’s new restaurant, Torno Subito, which promises “to take guests on a journey back to 1960s Italy”. It is the three Michelinstarred chef’s first venture in Dubai and should be every bit as ambitious as you would expect from the man whose restaurant in Italy, Osteria Francescana, was crowned number one in this year’s list of the World’s 50 Best Restaurants.

Akira Back Dubai

Another exciting opening at the W Dubai – The Palm hotel is South Korean chef Akira Back’s new restaurant, which will continue to showcase some of the finest Asian food in the world. Back, whose Seoul restaurant, Dosa, won a Michelin star last year, describes his menu as,  “an innovative Japanese cuisine prepared with a Korean accent”.

Dinner by Heston Blumenthal

The highly experimental chef, whose dishes are as much about spectacle as taste, opens his first restaurant in Dubai next year. Housed at The Royal Atlantis Resort & Residences, Dinner by Heston Blumenthal will feature contemporary twists on recipes that date back to the 1300s, including goats’ milk cheesecake. Always remember with a Blumenthal dish: nothing is quite as it seems. 

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Wicked: For Good

Director: Jon M Chu

Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater

Rating: 4/5

Look north

BBC business reporters, like a new raft of government officials, are being removed from the national and international hub of London and surely the quality of their work must suffer.

Selected fixtures

All times UAE

Wednesday
Poland v Portugal 10.45pm
Russia v Sweden 10.45pm

Friday
Belgium v Switzerland 10.45pm
Croatia v England 10.45pm

Saturday
Netherlands v Germany 10.45pm
Rep of Ireland v Denmark 10.45pm

Sunday
Poland v Italy 10.45pm

Monday
Spain v England 10.45pm

Tuesday
France v Germany 10.45pm
Rep of Ireland v Wales 10.45pm

SCORES

Multiply Titans 81-2 in 12.1 overs
(Tony de Zorzi, 34)

bt Auckland Aces 80 all out in 16 overs
(Shawn von Borg 4-15, Alfred Mothoa 2-11, Tshepo Moreki 2-16).

MATCH INFO

Champions League quarter-final, first leg

Ajax v Juventus, Wednesday, 11pm (UAE)

Match on BeIN Sports

While you're here
The five types of long-term residential visas

Obed Suhail of ServiceMarket, an online home services marketplace, outlines the five types of long-term residential visas:

Investors:

A 10-year residency visa can be obtained by investors who invest Dh10 million, out of which 60 per cent should not be in real estate. It can be a public investment through a deposit or in a business. Those who invest Dh5 million or more in property are eligible for a five-year residency visa. The invested amount should be completely owned by the investors, not loaned, and retained for at least three years.

Entrepreneurs:

A five-year multiple entry visa is available to entrepreneurs with a previous project worth Dh0.5m or those with the approval of an accredited business incubator in the UAE.  

Specialists

Expats with specialised talents, including doctors, specialists, scientists, inventors, and creative individuals working in the field of culture and art are eligible for a 10-year visa, given that they have a valid employment contract in one of these fields in the country.

Outstanding students:

A five-year visa will be granted to outstanding students who have a grade of 95 per cent or higher in a secondary school, or those who graduate with a GPA of 3.75 from a university. 

Retirees:

Expats who are at least 55 years old can obtain a five-year retirement visa if they invest Dh2m in property, have savings of Dh1m or more, or have a monthly income of at least Dh20,000.

Armies of Sand

By Kenneth Pollack (Oxford University Press)
 

The specs: 2018 Range Rover Velar R-Dynamic HSE

Price, base / as tested: Dh263,235 / Dh420,000

Engine: 3.0-litre supercharged V6

Power 375hp @ 6,500rpm

Torque: 450Nm @ 3,500rpm

Transmission: Eight-speed automatic

Fuel consumption, combined: 9.4L / 100kms

Where to Find Me by Alba Arikha
Alma Books 

The biog

Born: Kuwait in 1986
Family: She is the youngest of seven siblings
Time in the UAE: 10 years
Hobbies: audiobooks and fitness: she works out every day, enjoying kickboxing and basketball

Scores

Wales 74-24 Tonga
England 35-15 Japan
Italy 7-26 Australia

Director: Jon Favreau

Starring: Donald Glover, Seth Rogen, John Oliver

Rating: 2 out of 5 stars

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Updated: March 26, 2024, 10:18 AM