The new chairman of the world amateur boxing association figures prominently on a U.S. sanctions list. The bank of the association wasn’t prepared to carry the reputational risk and closed the account.

Gafur Rakhimow is president of the International Boxing Association (AIBA), based in Lausanne. His problem: the U.S. finance department says he's a member of a criminal organization.

In a 2012 investigation into organized crime, U.S. official fingered Rakhimov, a citizen of Uzbekistan, as a central figure in such an organization: «Rakhimov is one of the leaders of Uzbek organized crime with a specialty in the organized production of drugs in the countries of Central Asia. He has operated major international drug syndicates involving the trafficking of heroin.»

The U.S. froze his assets and citizens are prohibited by law to do business with people mentioned in connection with organized crime.

Too Hot to Handle

When the AIBA appointed Rakhimov as interim president in January, the situation became too risky for Banque Cantonale Vaudoise (BCV). The bank cancelled the account and safe deposit box belonging to the association in March, according to a report by «inside the games».

Rakhimov has refuted the allegations made by the U.S. and demanded to get his name removed from the blacklist. Despite the controversy, the boxing association elected the Uzbek as its president earlier this month.

Not the Only Sanctioned Association

The BCV bankers however are sticking to their position. The bank faces reputational risks because of the U.S. allegations, according to a letter by the bank seen by «inside the games». BCV asked the AIBA to provide it with a destination for its assets and to return the key to the safe within 30 days.

U.S. sanctions have already impaired the business of the chess association Fide: UBS closed the account of the association because its president was on a sanctions list.

Kirsan Iljumschinow was replaced last month, but his successor, Arkadi Dworkowitsch, a former adviser to Russian President Vladimir Putin, is also under the U.S. spotlight.