UBS Managed Millions for Ghislaine Maxwell Following JPMorgan’s Exit, Unsealed Records Reveal

​LONDON/ZURICH (UA Finance News) — Swiss banking powerhouse UBS is facing fresh scrutiny after unsealed U.S. Justice Department documents revealed that the lender managed millions of dollars for Ghislaine Maxwell for years, even after rival JPMorgan Chase had blacklisted her associate, Jeffrey Epstein, as a high-risk client.

The Banking Timeline: From JPMorgan to UBS

According to the documents, the transition occurred during a critical period of legal and reputational pressure:

• The Onboarding: UBS opened personal and business accounts for Maxwell in 2014, mere months after JPMorgan Chase ended its long-standing relationship with Epstein due to "reputational risk."

• The Asset Size: UBS helped Maxwell manage as much as $19 million in cash, shares, and hedge fund investments in the years leading up to her 2020 arrest.

• The "VIP" Treatment: The bank assigned Maxwell two dedicated relationship managers and provided her with benefits typically reserved for its wealthiest "Ultra-High-Net-Worth" clients.

The Red Flags Ignored

Internal emails from JPMorgan, dating as far back as 2011, showed that the U.S. bank had internally flagged Maxwell as a "High Risk Client" specifically due to her proximity to Epstein. Despite this, and the widespread media reports connecting the two, UBS proceeded with the onboarding.

• A Brief Epstein Connection: The records also show UBS briefly provided Jeffrey Epstein himself with a credit card in 2014, although that account was closed months later due to reputational concerns. However, the bank chose to maintain its relationship with Maxwell for several more years.

  The UA Finance Analysis: A Lesson in AML Failure

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  For financial professionals and investors, the UBS-Maxwell case serves as a stark warning about Compliance and KYC (Know Your Customer) protocols:

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  1. Risk Contagion: Maxwell’s wealth was inextricably linked to Epstein. By accepting Maxwell, UBS essentially accepted the reputational "contagion" that JPMorgan had already rejected.

  2. Due Diligence Gaps: While UBS claims to have conducted due diligence before the transfer, the decision to ignore a "High Risk" flag from the largest U.S. lender raises questions about the rigor of Swiss private banking standards at the time.

  3. The "Cost of Compliance": JPMorgan eventually paid $75 million in 2023 to settle claims related to its Epstein ties. UBS’s involvement, while currently not facing legal charges of wrongdoing, represents a significant "ESG" (Environmental, Social, and Governance) risk for its shareholders.