Swiss Bank Safra Sarasin Fined 3.5 Million Swiss Francs for Petrobras Corruption

J. Safra Sarasin SA, a private Swiss bank, has been fined 3.5 million Swiss francs (approximately 4.3 million U.S. dollars) following a lengthy investigation into corruption and money laundering involving Brazil's state-owned oil company, Petrobras. The Swiss Federal Prosecutor's Office announced the conclusion of the investigation on Friday, stating that the bank had reached a settlement with Petrobras, paying 16 million Swiss francs in compensation. This settlement negated the need for any additional damages.

The bank clarified that the prosecutor's penalty order does not constitute an admission of guilt or acceptance of civil or criminal liability. The investigation revealed that a former employee of Safra Sarasin Bank was sentenced to six months of probation for serious money laundering offenses. Between November 2011 and July 2014, while employed at another Swiss bank, the individual engaged in money laundering activities totaling 29.2 million U.S. dollars. During the same period, Safra Sarasin Bank failed to implement measures to prevent money laundering, resulting in 71 million U.S. dollars being laundered.

The investigation involved multiple bank accounts held by Safra Sarasin Bank, which were used to bribe Petrobras executives. These bribes facilitated the awarding of contracts to approximately 10 companies in the oil and construction sectors. The Swiss prosecutor's office initiated this investigation in 2019. The extensive corruption probe, known as "Operation Car Wash," has led to the imprisonment of numerous individuals, including former Brazilian President Luiz Inacio Lula da Silva.

In Brazil, over 130 political figures and corporate executives have been convicted in connection with this case. The prosecutor's office noted that the fine amount took into account the bank's subsequent corrective actions and that all parties involved have declared they will not appeal the penalty. This case underscores the global reach of corruption and money laundering investigations, highlighting the importance of stringent regulatory measures and compliance frameworks within the financial sector.