1MDB case: bank JP Morgan Suisse convicted by summary penalty order
Swiss Government
Press release
Published on 22 August 2025
Bern, 22.08.2025 -- At the conclusion of criminal proceedings initiated in November 2022, the Office of the Attorney General of Switzerland (OAG) has issued a summary penalty order and partial abandonment of the proceedings. The OAG sentenced J.P. Morgan (Suisse) SA (JP Morgan Suisse) to a fine of CHF 3 million for failing to take all reasonable and necessary organisational measures to prevent acts of aggravated money laundering. The fund transfers took place between October 2014 and July 2015. The outbound transactions totalled approximately CHF 174 million. This conviction is part of a series of proceedings conducted by the OAG relating to the embezzlement of assets from the Malaysian sovereign wealth fund 1Malaysia Development Berhad (1MDB). The private claimant in the case, 1MDB, stated that it will be compensated in the amount of MYR 1.4 billion. For this reason, the OAG has not ordered a compensatory claim.
This criminal conviction stems from one of several cases connected with the embezzlement of assets belonging to the Malaysian sovereign wealth fund 1MDB.
As a reminder, in the same case complex, the Criminal Chamber of the Federal Criminal Court found two managers of Petrosaudi guilty of embezzling over USD 1.8 billion from 1MDB on 28 August 2024 (see FCC press release). The two accused individuals were found guilty of fraud, complicity in criminal mismanagement and qualified money laundering. The Federal Criminal Court found them criminally liable for the implementation of a fraudulent scheme that led to the transfer of USD 1 billion from 1MDB on the false pretext of a joint venture between Petrosaudi and 1MDB. Subsequently, the accused individuals lent assistance, in connection with acts of criminal mismanagement, in the misappropriation of two additional instalments of USD 500 million and USD 330 million, claiming falsely that these funds were intended for legitimate investment opportunities, before laundering the embezzled funds in their entirety. The presumption of innocence prevails pending a final and legally binding judgment. JP Morgan Suisse is not a party to these proceedings.
In this context, in November 2022 the OAG initiated criminal proceedings against the bank JP Morgan Suisse and persons unknown for corporate liability in connection with aggravated money laundering (Art. 102 no. 2 Criminal Code in conjunction with Art. 305bis no. 1 and 2 Criminal Code) or aggravated money laundering itself (Art. 305bis no. 1 and 2 Criminal Code), for the period from 2009 to 2015. In its order dated 22 August 2025, the OAG found JP Morgan Suisse guilty of violating Art. 102 para. 2 SCC in relation to the offense of aggravated money laundering (Art. 305bis sections 1 and 2 SCC), for the period from 7 October 2014 to 21 July 2015, and sentenced the bank to a fine of CHF 3 million. This amount takes into account the time elapsed since the offence was committed, as well as JP Morgan Suisse's very good cooperation in the proceedings and the compensation of the private claimant. Proceedings relating to the facts pre-dating 2 October 2014 are abandoned under the terms of Art. 319 para. 1 lit. b and d of the Criminal Procedure Code.
Criminal origin of funds
During the period under investigation, JP Morgan Suisse opened several business relationships connected with Petrosaudi and its two managers. The funds that financed these business relationships can be traced back to the offences of fraud and complicity in criminal mismanagement committed against 1MDB (judgment SK.2023.24 of 28 August 2024). In the present case, JP Morgan Suisse received or executed 43 transfers of funds originating from those earlier offences between 15 October 2014 and 21 July 2015, including 34 transfers abroad for a total of approximately CHF 174 million.
Corporate liability
The investigation established that from 2 October 2014 onwards, despite derogatory information from various public sources concerning the potential involvement of the two managers and of the Petrosaudi group in the embezzlement scheme defrauding 1MDB, JP Morgan Suisse did not adequately clarify the nature of the business relationships and lacked reasonable and critical judgment. The transactions carried out between 7 October 2014 and 21 July 2015 were made possible due to an organisational failure at JP Morgan Suisse, which did not prevent the commission of money laundering offences.
Private claimant compensation
Since 1MDB, as the private claimant, is compensated in the amount of MYR 1.4 billion, the OAG does not order a compensatory claim.
The parties have declared that they will not appeal the order, which as a result enters into force. The order may be consulted or obtained in an anonymised form under the standard conditions via the OAG's Legal Services (rechtsdienst@ba.admin.ch).
Original text of the press release in French.
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