Grounds for Terminating a Client Relationship in Swiss Private Banking

AE

The potential grounds on which the Swiss private bank can terminate the relationship with a high-profile, successful entrepreneur who has launched a political career with rather extremist political views are as follows:

B. The client is not able (or willing) to provide documentary evidence of tax compliance.

This reason is valid because banks are required to comply with various anti-money laundering (AML) regulations and policies, which require them to obtain evidence of their customers' tax compliance. If a client is not able or willing to provide such documentation, it may be deemed a violation of AML regulations and a risk to the bank's reputation. Moreover, failure to comply with tax regulations could result in potential legal and regulatory penalties for the bank.

D. Continuing the client relationship poses an increasing reputational risk, which could negatively affect the bank's future business.

This reason is also valid because banks must be vigilant to maintain their reputation as trustworthy financial institutions. If the bank finds that its relationship with a particular client may pose a risk to its reputation, it may choose to terminate the relationship. In this case, the entrepreneur has launched a political career with rather extremist political views, which could be seen as controversial, and the bank may not want to be associated with those views.

A, C, and E are not necessarily relevant reasons to terminate the relationship in this case.

A. The client has made its fortune in the mining and excavation industry, which the bank has deemed as a high-risk industry.

While it is true that the mining and excavation industry may be considered high-risk due to its potential for money laundering, this reason alone would not be enough to terminate the relationship with the entrepreneur. The bank would need to provide additional evidence that the client is involved in suspicious activities related to the industry.

C. The client's account has an increase in unusual and significant monthly inflows.

While this could be a red flag for potential money laundering activities, it alone would not be sufficient grounds to terminate the relationship with the entrepreneur. The bank would need to investigate the sources of these inflows and determine if they are legitimate or not.

E. A business partner of the account holder requests an asset freeze, stating a business dispute and disagreement over the quality of goods and services sold to the partner.

While a business partner requesting an asset freeze could be a sign of potential fraudulent activity, it would not be sufficient grounds to terminate the relationship with the entrepreneur. The bank would need to conduct its own investigation and determine if there is any evidence of fraudulent activity on the part of the entrepreneur.