Swiss Court Fines Lombard Odier $3.7 Million in Karimova Money-Laundering Case

Switzerland’s Federal Criminal Court has fined Geneva-based private bank Lombard Odier 3 million Swiss francs, or about $3.68 million, after finding that it failed to take adequate organizational measures to prevent money laundering in a case linked to Gulnara Karimova, the eldest daughter of Uzbekistan’s late President Islam Karimov. The court also dismissed criminal proceedings against Karimova without ruling on the allegations against her. The ruling was delivered on July 27 in Bellinzona, following a trial that began in April. Swiss prosecutors had accused Karimova of accepting bribes and leading a criminal organization known as “The Office,” which allegedly channeled hundreds of millions of dollars through Swiss bank accounts between 2005 and 2013. Lombard Odier and one of its former account managers were accused of helping conceal assets derived from the group’s activities. The former employee was found guilty of aggravated money laundering. The court concluded that the bank had failed to take “all reasonable and necessary organizational measures” to prevent the offense. The former account manager, identified only as “C.,” received a fully suspended 24-month prison sentence. The court also ordered the confiscation in Switzerland of more than 400 million Swiss francs in assets originating from the money-laundering offense or controlled by “The Office.” In a statement, Lombard Odier said the case began after it voluntarily reported suspicious transactions to the Swiss authorities in 2012. It maintained that robust anti-money-laundering controls were in place and said it would appeal. The first-instance judgment is not final. The court dismissed the proceedings against Karimova on procedural grounds. The judges concluded that there was no realistic prospect of her release from prison in Uzbekistan or extradition to Switzerland before the limitation period expired. The court did not rule on the allegations against her. Proceedings were also dismissed against another defendant, identified only as “B.,” who lives in Russia and could not travel to Switzerland through no fault of his own. The sentences imposed on Lombard Odier and its former employee were reduced because of the time elapsed since the offenses in 2011 and 2012. Charges covering events before July 27, 2011, were dismissed as time-barred. Karimova, now 54, has consistently denied wrongdoing. She has been imprisoned in Uzbekistan since March 2019, when she was moved from house arrest after the authorities said she had breached its conditions. She is serving a 13-year sentence for offenses including organizing a criminal group, extortion, and embezzlement. The Swiss investigation began in 2012 and concerns conduct dating back more than two decades. In May 2025, the Federal Criminal Court joined the proceedings against Karimova and Lombard Odier. The wider international investigation has involved assets across several jurisdictions. Assets associated with Karimova in Switzerland, France, and the United States have previously been estimated at nearly $1.4 billion. The case has also led to efforts to return confiscated assets to Uzbekistan. In February 2025, Uzbekistan and Switzerland signed an agreement covering approximately $182 million confiscated by the Swiss authorities. The funds are to be transferred through the Uzbekistan...

Uzbekistan Completes First Ishonch Fund Health Project for Maternal and Newborn Care

Uzbekistan has completed the first healthcare program financed through the Ishonch Fund, a mechanism established under the restitution agreement between Uzbekistan and Switzerland to channel returned assets into public development projects. The initiative invested $43.5 million in maternal and newborn healthcare across the country, marking the fund’s first large-scale use for social sector reform, the Ministry of Economy and Finance said. The project, “Every Mother and Child Survives and Thrives: Reducing Preventable Maternal and Newborn Deaths in 227 Perinatal Centres of Uzbekistan,” was launched in September 2023. It officially concluded at a June 25 ceremony attended by representatives of Uzbekistan’s government, the Swiss Embassy, United Nations agencies, and international development partners. Implemented jointly by UNICEF, UNFPA, and the World Health Organization, the program focused on modernizing perinatal services, upgrading medical infrastructure, and improving the skills of healthcare professionals. More than 231 perinatal healthcare facilities across Uzbekistan received modern medical equipment, including advanced incubators, respiratory support systems, anesthesia machines, and other life-saving devices. Around $31 million of the project’s budget was dedicated to purchasing and installing this equipment, expanding the capacity of hospitals to care for mothers with high-risk pregnancies and newborns requiring intensive treatment. Investment also extended to the country’s medical workforce. More than 80,000 healthcare professionals completed specialized training in modern perinatal care, high-risk pregnancy management, neonatal intensive care, and laboratory diagnostics. The program also supported the development and revision of 49 national clinical protocols, helping align maternal and newborn care with international medical standards. Public outreach formed another major part of the initiative. Nationwide awareness campaigns encouraging women to receive regular antenatal care reached nearly 20 million people, while improved maternal and perinatal healthcare services benefited almost four million citizens. According to monitoring data presented at the closing event, the share of preventable maternal deaths declined from 77.3% in 2022 to 62.8%, a decrease of 14.5 percentage points. Survival rates among newborns, particularly babies born with extremely low birth weight, increased by around 13% during the life of the program. Regina Castillo, UNICEF Representative in Uzbekistan, said the results demonstrate what can be achieved through cooperation between Uzbekistan’s government, Switzerland, civil society, and UN agencies. “The introduction of modern medical equipment and advanced clinical practices in hundreds of perinatal facilities has significantly expanded access to high-quality maternal and newborn healthcare services across the country,” she said. Swiss Ambassador Konstantin Obolensky linked the project to Switzerland’s asset restitution priorities. “The restitution of illicitly acquired assets and their transparent and accountable use remain among Switzerland’s key priorities,” Obolensky said. “The Ishonch Fund serves as a practical example of how returned assets can directly improve people’s quality of life.” Deputy Minister of Economy and Finance Otabek Fazilkarimov said the effective use of restituted assets plays an important role in developing human capital and advancing reforms in the social sector. The Ishonch Fund finances development programs implemented by UN agencies under the oversight of representatives from both governments, the UN, and civil society. As previously reported by The Times of Central Asia,...