Former Swiss Banker Ueli Kestenholz Sentenced in Historic Money Laundering Case
Zurich, 13 January 2026 – In a case that highlighted Switzerland’s role in international financial scandals, former bank executive Ueli Kestenholz was sentenced to prison in 2023 for his involvement in a scheme laundering billions embezzled from Venezuela’s state-owned oil company.
Background of the Scheme
The scandal centred on funds diverted from Petróleos de Venezuela (PDVSA), the Venezuelan state oil company. Kestenholz, a Swiss national, pleaded guilty in 2023 to conspiring to hide over $60 million from US tax authorities, part of a broader billion-dollar laundering operation. The scheme involved complex financial transactions through Swiss banks, exploiting Switzerland’s banking secrecy laws at the time.
Key Facts
| Aspect | Details |
|---|---|
| Individual Involved | Ueli Kestenholz, former Swiss bank executive |
| Crime | Money laundering and conspiracy to defraud US tax authorities |
| Scale | Part of a billion-dollar scheme involving Venezuelan oil funds |
| Sentence | Prison term (specific length not detailed in sources) |
| Date of Plea | March 2023 |
| Date of Sentencing | 2023 |
Implications for Swiss Banking
This case underscored the vulnerabilities in Switzerland’s financial system prior to reforms aimed at greater transparency. It drew parallels to historical scandals like the 1989 secret files affair, where authorities maintained illegal surveillance files. Kestenholz’s conviction served as a reminder of the need for robust anti-money laundering measures, influencing ongoing debates in Swiss politics about banking regulations.
Frequently Asked Questions
Who is Ueli Kestenholz?
Ueli Kestenholz is a former Swiss bank executive who pleaded guilty in 2023 to charges related to international money laundering.
What was the scheme about?
It involved laundering funds embezzled from Venezuela’s state oil company, with Kestenholz helping to hide millions from US tax authorities.
Why is this significant?
The case exposed weaknesses in Swiss banking secrecy and contributed to global efforts against financial crime, similar to other Swiss scandals involving money launderers.