Swiss prosecutors have charged Lombard Odier, one of the country’s most historic private banks, with serious allegations of money laundering. The allegations were made public on Friday by the Swiss Attorney General’s Office (OAG), who filed the indictment against both the bank and a former worker at Switzerland’s Federal Criminal Court earlier in the week.

The charges suggest that the parties in question allegedly aided in hiding the illegal proceeds of a criminal organization established by Gulnara Karimova. Karimova, the daughter of the late autocratic President of Uzbekistan, Islam Karimov, was previously indicted by the attorney general in 2023 on charges of laundering illicit money in Switzerland from 2005 to 2012.

According to the OAG, investigations indicate that a portion of the illicit funds may have been moved through Lombard Odier’s bank accounts in Geneva. They further allege that the bank and a former relationship manager played a significant role in masking the proceeds from the criminal activities of ‘The Office’.

Lombard Odier, tracing its roots back to 1796, has refuted these allegations. In a statement released on Friday, they noted the OAG’s decision to press charges against them for inadequate control measures. The bank maintains that the allegations are baseless and without merit, and vows to vigorously defend itself.

The bank also stated that the case was brought about due to Lombard Odier’s active reporting of suspicious activities to Swiss authorities. As of now, Lombard Odier has been under investigation since 2016.

CNBC has attempted to contact Gregoire Mangeat, the legal representative for Karimova throughout her ongoing legal disputes with Swiss authorities. Currently, Karimova is serving a prison sentence in Uzbekistan.

The news serves as a cautionary tale to investors, emphasizing the importance of transparency and stringent control measures within banking institutions.