Zurich court sentences Gazprombank employees

The Zurich court has sentenced four employees of Gazprombank Switzerland (GPBS) to conditional fines for lack of due care in financial transactions. They allegedly breached their duty of care in handling the accounts of a Putin confidant.

In the trial of four employees of Gazprombank Switzerland (GPBS), the Zurich court found all four bank employees guilty on Thursday. In addition to the bank’s CEO, two other board members and a customer advisor were involved. The bank ceased operations last fall and is in the process of dissolution.

The head of the bank was sentenced to a fine of 180 daily exchange rates of CHF 3,000 each. The other two members of management were also sentenced to 180 daily rates of CHF 350 and CHF 500 respectively. The customer advisor received 120 daily rates of CHF 400 each. The fines were imposed on probation. They only have to be paid if the convicts reoffend within the two-year probationary period.

Not investigated despite inconsistencies

The bankers are accused of having had a business relationship with Russian cellist and conductor Sergei Roldugin between 2014 and 2016. They would not have made it sufficiently clear whether this was the actual beneficiary of the assets. Millions have flowed through his accounts with the GBPS.

Cellist and conductor Roldugin is considered a close confidant of Russian President Vladimir Putin. He would be godfather to Putin’s daughter.

“It is impossible to determine who the actual beneficial owner was,” said the presiding judge at the opening of the verdict. However, it was clear to the court that this could not be Roldugin.

By not responding to the question despite the inconsistencies, the bank employees have breached their duty of care. There were more than enough warning signs – in addition to the general political situation in Russia, the court referred, among other things, to media reports about Roldugin. For example, he had said in an interview that he was “not a millionaire”.

According to the court, the business relationship should have been terminated by November 2015 at the latest. Instead, it went on for about a year.

According to the prosecutor’s office, it is common knowledge that Putin officially declares only small assets and low incomes, while his real assets are managed by informants. Gazprombank and Gazprombank Switzerland are financial offshoots of the state-controlled Russian energy and raw materials group Gazprom.

At the hearing, which took place on March 8, the suspect demanded acquittal. The public prosecutor demanded 7 months in prison for all suspects.

Judgment continues

The judgment of the Zurich court is not yet final. It can be referred to the Supreme Court. The bank employees’ lawyers appealed in court.

A representative of the prosecutor’s office welcomed the court’s convictions to media representatives. The verdict is an important signal for compliance with due diligence in financial transactions. (oo/sda)