Monaco Regulatory Body Censures Julius Baer for Banker's Oversight in Client Transactions

Monaco's financial watchdog, the Commission de Control des Activités Financières (CCAF), has issued a formal reprimand to the local branch of Julius Baer Group. The Swiss bank was cited for inadequate oversight of its employee's actions, involving irregular transactions totaling over 155 million euros. The case spotlighted a significant breach wherein a banker managed a transfer of more than 35 million euros without the necessary higher-level approval from the bank's management in Zurich, as per standard protocol.

The situation unfolded as the implicated banker circumvented internal controls to facilitate transfers on behalf of an unnamed client. Bloomberg reports indicate that such a substantial transaction typically requires additional scrutiny at the bank’s headquarters, which was sidestepped in this instance. Julius Baer, after uncovering the internal breach, lodged a criminal complaint against the employee involved.

A confidential source informed NEWS.MC that the employee had redirected client funds outside the bank to garner personal commissions from a third party. This incident has prompted a review of internal protocols at Julius Baer to prevent future breaches of this nature and uphold the integrity of Monaco's financial practices.