Ex-Private banking head admits €600,000 theft from wealthy clients

A former private bank employee admitted to embezzling more than €600,000 of customer money. Prosecutors allege that more than 20 transfers between December 2023 and March 2025 moved client funds to an account opened in his mother-in-law's name. Reportedly, a good portion of the money stolen went to a brokerage account and was lost in speculative investments. The bank has said fewer than 10 customers were affected and fully compensated, that the employee was dismissed with immediate effect, and that it has strengthened its controls.

ASSESSMENT

Press accounts of the trial said larger transfers required a second employee's approval. However, the case illustrates why an additional approver is not necessarily an independent safeguard when the approval process relies on information supplied by the person initiating the transaction.

TAKEAWAYS

• Families should receive account reporting from a source independent of the banker who executes transactions and review it regularly

  
  

• Ask banks what controls exist related to transfer and what would surface a pattern of small transfers to a new payee.

  
  

Source: Reuters