Monaco’s Commission de Control des Activités Financieres has criticized the local branch of Julius Baer Group for inadequate oversight of its operations, particularly concerning a banker who mishandled significant transactions. The case involves ten transactions totaling over 155 million euros, including one exceeding 35 million euros, which were not subject to the required scrutiny.
The regulator found that the transactions, which should have been escalated to the bank’s Zurich headquarters for review, were processed without proper oversight from the bank’s management. Julius Baer has since filed a criminal complaint against the implicated employee, who reportedly exploited internal procedures for personal gain, sending client funds outside the bank to earn commissions from a third party.
The Commission’s findings underscore concerns about internal controls within financial institutions, highlighting the need for robust mechanisms to prevent such lapses. The bank has stated it was misled by the employee and has vowed to strengthen its compliance protocols.
