Pierre Mirabaud, the 77-year-old former president of Switzerland’s Bankers Association, has pleaded guilty to money laundering and systematic illicit commission payments tied to a decade-long relationship with Kuwait’s Public Institution for Social Security (PIFSS).
The Federal Criminal Court in Bellinzona has scheduled a summary trial for September 8 to confirm procedural compliance and assess the appropriateness of the sentence sought by prosecutors. The prosecution has requested a 24-month suspended prison term, citing Mirabaud’s lack of recent professional activity, declining health, and cooperation with authorities, including his proactive participation in a global settlement with Kuwait’s Social Security Authority.
Between May 2000 and March 2012, Mirabaud allegedly granted Fahad Al-Rajaan, former PIFSS director-general, unauthorized rebates totaling 82.33 million Swiss francs. In return, Al-Rajaan directed PIFSS assets to Mirabaud’s Geneva-based private bank, where balances reached approximately $595 million by late 2012. These funds were invested in managed funds, generating substantial revenue for the bank, portions of which were distributed to partners.
Prosecutors allege the transactions were structured through multiple entities and accounts to obscure the origin and traceability of the illicit commissions. A key conduit was the Silvery Bay entity, which routed payments to a Geneva-based attorney’s account at Rothschild Bank, according to the indictment. The money-laundering charges cover 122 transfers valued at nearly 77 million francs, intended to conceal the provenance of the kickbacks.
Mirabaud’s prominence on Switzerland’s financial landscape adds weight to the case. He led the Swiss Bankers Association from 2003 to 2009, earning the nickname “Monsieur Pierre” among colleagues for his flamboyant style, including a Salvador Dalí-inspired mustache and colorful suits.
The investigation is part of the broader “Orient Express” probe launched by Swiss federal prosecutors in 2021, which has also ensnared other figures. Yves Mirabaud, Pierre’s nephew and former senior managing partner at the private bank, faced separate money-laundering charges that concluded in May with a summary penalty.
Kuwait has pursued legal action against Al-Rajaan and associates internationally. Civil proceedings in the U.S. and U.K. alleged he received $969 million in kickbacks, though Al-Rajaan died in London in 2022. Other financial institutions, including EFG, UBP, Pictet, and Man Group, have also faced scrutiny in connection with the PIFSS-related matters.
Mirabaud’s legal team stated their client would address the court during proceedings. The Mirabaud Group confirmed it is not a party to the cases against former partners and declined further comment.
