Swiss FinTech Firm LeonTeq ‘Strongly Refutes’ Allegations of Suspicious Transactions

  • Richard Marley
  • October 14, 2022
  • 2 minutes read
  • 63

Swiss FinTech firm LeonTeq has rejected allegations of suspicious transactions with possible links to money laundering, saying that there is no evidence to back them.

The Swiss firm said it “strongly refutes” allegations about its two products and its reporting of transactions linked to them. It said there had been internal and external probes of the case, which failed to produce evidence to back up the suspicions raised.

The firm has hit back at claims in a recent media report alleging suspicious trading potentially related to tax evasion or money laundering by clients linked to Leonteq-issued products distributed by a firm based in the British Virgin Islands. 

As a result, Leonteq’s shares have slumped by almost 24 per cent since last Friday.

On Monday this week, the Financial Times reported that whistleblowers had accused auditor EY of whitewashing suspicious trades, including money laundering and tax evasion in an investigation it conducted this year for Leonteq, a long-standing client.

Leonteq created two trades for French workers’ co-operative society ID Formation at the start of 2021, the FT reported.

Shares in Leonteq fell sharply and continued to lose ground on Tuesday. Since Friday, they have sunk more than 24 per cent. Yesterday, the shares were up slightly on the day.

Leonteq, which is listed on the SIX exchange, noted that the 10 October article contained allegations made concerning two Leonteq-issued products, “vaguely referring to potential tax evasion or money laundering by third parties.”

“The assertion was made that Leonteq should have reported those transactions to the relevant authorities and that a special investigation conducted into this matter was not sufficiently independent. 

Leonteq strongly refutes these allegations, which were first raised internally in 2021 and were thoroughly investigated by Leonteq’s compliance department. This investigation found no evidence that would corroborate the suspicions raised,” the firm, which is based in Switzerland, said in an emailed statement to WealthBriefing and other media yesterday. 

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