Swiss bank UBS searched in Malaysian money-laundering case

Swiss bank UBS searched in Malaysian money-laundering case

Prosecutors barred from using bank’s internal memorandum on business ties with Sabah Chief Minister Musa Aman – Swiss Federal Court to decide on appeal over admittance of evidence

(BERN, SWITZERLAND) A court in Switzerland’s capital, Berne, found that there was sufficient suspicion for federal prosecutors to search UBS headquarters in Zurich in a criminal investigation on alleged money-laundering and due diligence breaches. The house search took place on 19 November 2014 when prosecutors were looking for evidence on the bank’s business ties with Musa Aman, Chief Minister of the Malaysian state of Sabah in Borneo.

However, the Berner Zwangsmassnahmengericht court ruled that a confiscated „risk assessment“ by the bank on UBS’ ties with Musa Aman, Chief Minister of the Malaysian state of Sabah, may not be unsealed and may not be used as evidence in a money laundering case against the bank.

The „risk assessment“ had been prepared at the request of FINMA, the Swiss bank regulator. The court applied a basic principle in criminal law, according to which no suspect may be forced to give testimony against himself.

The Attorney General of Switzerland appealed against this decision. A final ruling by the Swiss Federal Court is expected for the next weeks. Once this technical matter will be settled, UBS may be facing money laundering charges and a heavy penalty.

The case against UBS was triggered by a complaint under criminal law by the Bruno Manser Fund, a Swiss human rights and environmental organisation. The bank has been accused of laundering US$ 90 million in corruption proceeds from the Borneo timber trade on behalf of Sabah Chief Minister Musa Aman.

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