February 7, 2025|
AI
|10 months agoSwiss Banks Face Dilemma Over Magnitsky Case Ruling
Swiss Federal Court ruling forces banks to choose between complying with Swiss judiciary or US sanctions in Magnitsky case, potentially exposing institutions to international penalties.
AI
Generated IllustrationKey Takeaways
AI
- Swiss Federal Court denied Hermitage Capital Management's appeal on January 21, 2025
- Swiss banks can now return CHF14 million to three Russian citizens linked to tax fraud
- The original fraud involved $230 million uncovered by Sergei Magnitsky
- Swiss Attorney General's Office closed the case in 2021 citing insufficient evidence
By The Numbers
CHF14 million
Amount eligible for return to Russian citizens
CHF18 million
Total frozen funds
$230 million
Original fraud amount
They Said
"Banks in Switzerland strictly comply with all applicable laws and regulations, including sanctions imposed by Swiss, international, and supranational authorities"
"breaches international sanctions in relation to Russia and the Magnitsky case and is in serious violation of Switzerland's obligations under the UN Convention"
1
Swiss Court Ruling Creates International Compliance Dilemma
2
Background of the Magnitsky Case
3
Banks Face Complex Legal Challenge
4
International Implications and Response
5