Genevan wealth manager saw more than 1.1 billion Swiss francs ($1.2 billion) frozen after it was caught up in a Swiss criminal investigation related to Angola and money laundering. Syz came to hold funds for Carlos Manuel when it acquired the Swiss activities of Royal Bank of Canada, or RBC, five years ago. Syz, which isn’t being investigated, sparked the investigation after raising alarm with Swiss money laundering officials at MROS at the end of 2018. Specifically, the bank had transferred $213 million from AAA Seguros to an account maintained by Carlos Manuel’s holding company, which was in turn transferred to his personal account.
Geneva’s prosecutor opened an investigation into suspected money laundering, blocking funds suspected to be tied to Carlos Manuel and associates. Three months later, Carlos Manuel was charged criminally in Geneva; his lawyer says he contests the charges. Syz knew of a dicey client relationship when it acquired RBC Switzerland, and the accounts and funds weren’t part of the valuation of the acquisition, a source familiar with the matter.