The Office of the Attorney General of Switzerland (OAG) has closed the criminal proceedings against unknown individuals suspected of committing ML in Switzerland between 2008 and 2010 due to lack of evidence.
In 2011, the OAG had launched a criminal investigation upon suspicion of ML filed by the London-based company Hermitage Capital Management Ltd. The authority suspected that this ML was committed in 2008-10 after a Russian tax fraud in 2007. The tax fraud had resulted in illicit tax refunds of over $230 million. The criminals laundered a fraction of these funds in Switzerland. Thus, the OAG ordered the seizure of assets of approximately $20 million.
However, the OAG’s investigation did not generate adequate evidence to justify charging anyone in Switzerland. Thus, the authority decided to close the proceedings. However, since there is a known link between some of the seized assets in Switzerland and the fraud committed in Russia, the OAG has ordered the forfeiture of assets worth over CHF 4 million ($4.41m).