Swiss private banking firm EFG International has announced it has reached a final settlement with the Public Institution for Social Security (PIFSS) of Kuwait. This agreement effectively resolves long-running civil proceedings initiated in the United Kingdom, as confirmed by the bank on Wednesday. EFG International operates as a global private bank, providing a comprehensive suite of banking and wealth management services primarily to high-net-worth individuals and institutional clients worldwide. The Kuwaiti public pension fund had brought forward the legal action, alleging that EFG, along with asset manager Man Group and other entities, was involved in the laundering of bribes.
These serious accusations centred on payments allegedly made to PIFSS’s late director, tracing back to events that transpired between 1995 and 2012. EFG International, having already established a financial provision in its accounts to cover potential costs related to the case, clarified that this recent settlement would result in only a marginal additional impact. This specific financial hit is estimated to be approximately 5 million Swiss francs, which translates to about $6.09 million, and is anticipated to affect the firm’s net profit in the second half of 2026. The figure reflects the final costs beyond its existing provisions.
Crucially, the resolution is a significant development for the Swiss firm, as it effectively eliminates all remaining legacy litigation risk for EFG directly pertaining to the claims that were at issue in the UK proceedings. This comprehensive closure marks the end of a protracted legal challenge that has cast a shadow over past operations. The settlement allows EFG International to move forward with a clear slate concerning these historical allegations, thereby removing a notable uncertainty from its future financial outlook and operational focus.
