Swiss prosecutors have indicted Gulnara Karimova, the daughter of former Uzbek president Islam Karimov, on charges of money laundering and corruption. The indictment also names the former general director of a Russian telecommunications company’s Uzbek subsidiary, who remains unnamed.
Karimova, once a high-profile diplomat and businesswoman, allegedly led a criminal organization known as “The Office” from 2001 to 2013. Swiss authorities claim this organization, comprising dozens of individuals and numerous companies, began operations in Switzerland in 2005 to conceal funds obtained through illicit activities.
Swiss investigation
Swiss prosecutors launched their investigation in 2012, focusing initially on Karimova’s close associates following reports of suspected money laundering. By 2014, Karimova herself became a target after losing the diplomatic immunity granted by her United Nations activities in Geneva. Between 2018 and 2021, four individuals were convicted of money laundering and forging documents in connection to the case.
The Swiss Office of the Attorney General (OAG) revealed that over CHF 340 million had been definitively confiscated with plans for its return to Uzbekistan. Meanwhile, more than CHF 440 million in assets remain frozen as part of the proceedings against Karimova and the co-accused.
A sophisticated criminal network
The OAG’s press release described “The Office” as a professionally managed criminal enterprise. With a structured organization, stringent task allocation, and the use of violence and intimidation, the network operated like a legitimate business. Investigators uncovered references to around 100 companies used to obscure the group’s operations, ensuring a high degree of opacity.
Karimova is accused of exploiting her position as the president’s daughter and a public official to dominate Uzbekistan’s telecommunications sector. According to the OAG, foreign telecommunications companies seeking entry into the Uzbek market were compelled to make deals with her.
Global money laundering scheme
The funds, allegedly derived from bribes and corruption, were transferred through a complex web of companies and banks worldwide before landing in Swiss accounts managed by Karimova’s proxies. The scale of the operation highlights its global reach and the systemic corruption underpinning Uzbekistan’s telecom industry during Karimova’s influence.
Telecommunications bribery
Karimova’s activities have drawn significant scrutiny from international investigators. The Organized Crime and Corruption Reporting Project (OCCRP) has previously detailed her corrupt business practices and extensive money laundering operations.
Telecom giants such as VimpelCom (now VEON) and Telia Company admitted to bribing Karimova to secure market access in Uzbekistan. In 2016, VimpelCom paid US$795 million in penalties to U.S. and Dutch authorities. Similarly, Telia Company resolved allegations of bribery by paying US$965 million to regulators in the United States, the Netherlands, and Sweden.
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Arrest and sentencing
Karimova’s downfall began in 2015 when she was detained in Uzbekistan along with several close associates. She faced multiple trials and was eventually sentenced to 13 years in prison for money laundering and accepting bribes.
Her father, Islam Karimov, led Uzbekistan from 1989 until his death in 2016, ruling first as the head of the Uzbek Soviet Socialist Republic and later as the president of independent Uzbekistan. His administration faced widespread international condemnation for human rights abuses and press restrictions, creating an environment in which corruption could flourish.
A legacy of corruption
The indictment of Karimova sheds light on the intersection of political power and organized crime during her father’s presidency. It also underscores the global nature of financial crimes, with funds moving through international banking systems to conceal their illicit origins.
While Swiss authorities continue to pursue justice, Karimova’s case serves as a stark reminder of the devastating impact of corruption on nations and their citizens. Uzbekistan, under new leadership, has been working to recover stolen assets and rebuild its global reputation, but the shadow of its past still looms large.
