Whistleblowers have made serious allegations against Swiss fintech Leonteq. In addition, EY's auditors are said to have preferred not to look too closely at the long-standing client.
EY stands accused by whistleblowers of having downplayed suspicions of money laundering and tax evasion in an investigation of long-standing client Leonteq, the «Financial Times» (FT, behind paywall) reported Monday.
The allegations center on two deals the Swiss fintech company made for a French workers' cooperative in early 2021.
Both deals should have been reported as suspicious to French authorities for possible money laundering and tax evasion after it was discovered that large commissions were paid to a company in the British Virgin Islands, rather than to the broker in France who sold the investments on Leonteq's behalf, according to the FT.
The whistleblowers also accuse Leonteq and its internal auditor, EY, of failing to conduct a thorough review.
Documents and records related to the trades which were seen by the «FT» would raise questions about weak controls, a culture of rule-breaking, and poor corporate governance at Leonteq, they added. The company traded 29 billion Swiss francs ($31.7 billion) worth of structured products last year, it said.
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