ZURICH Switzerland's Financial Market Supervisory Authority on Thursday banned Gazprombank Switzerland GZPRI.MM from accepting new private clients until further notice after finding serious shortcomings in its anti-money laundering processes.

An investigation initiated in light of Panama Papers revelations found the Swiss subsidiary of the Russian state-owned bank to be in serious breach of anti-money laundering due dilligence requirements between 2006 and 2016.

"The bank failed to carry out adequate economic background clarifications into business relationships and transactions with increased money laundering risks," FINMA said in a statement. "No new relationships with private clients may be accepted and existing relationships must be strictly monitored."

Gazprom (Switzerland) in a separate statement said it accepted FINMA's decision. It noted the measures related exclusively to its business with private clients, adding it is primarily engaged in corporate banking.

(Reporting by Brenna Hughes Neghaiwi; Editing by Michael Shields) ((brenna.neghaiwi@thomsonreuters.com; +41 58 306 77 35;))