Lombard Odier fined $3.7M for failing to stop Uzbek money laundering ring

Lombard Odier, the Swiss private bank, was convicted and fined $3.7 million for failing to prevent an Uzbek money laundering operation that ran through its accounts.

The case centers on Gulnara Karimova, the daughter of Uzbekistan’s late president Islam Karimov. Lombard Odier, along with one of its former employees, was indicted on November 26, 2024, on charges of aggravated money laundering connected to Karimova’s network.

A trial years in the making

The trial at the Swiss Federal Criminal Court in Bellinzona began on April 27, 2026, with main hearings wrapping up on May 20, 2026. The procedural investigation behind this case stretches back over 15 years, with suspicions first arising between 2012 and 2016 regarding accounts opened for entities associated with Karimova.

During earlier investigations into the money laundering activities, the bank reportedly froze over $800 million in assets.

Proceedings against Karimova herself were dismissed on April 28, 2026. A verdict is anticipated in the summer of 2026.

Why this matters beyond Switzerland

Lombard Odier is one of Switzerland’s last remaining private banking partnerships. Getting convicted of aggravated money laundering is not consistent with that brand identity.

For the broader financial compliance world, the Lombard Odier case reinforces that know-your-customer and anti-money-laundering protocols apply even when the client is connected to a sitting head of state.

The $800 million in frozen assets linked to this case didn’t move through DeFi protocols or Bitcoin mixers. It moved through accounts at a centuries-old Swiss private bank.

The European Union’s anti-money laundering authority, AMLA, is setting up shop in Frankfurt and will oversee both traditional and digital finance sectors.

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