ZURICH, June 17 (Reuters) - The Swiss Attorney General's

Office has handed a former wealth manager at Pictet Bank a

six-month suspended prison sentence and fined the private bank

for money laundering in a Petrobras-related probe, the

government said on Tuesday.

Pictet was ordered to pay 2 million Swiss francs ($2.5

million) for failing to take all reasonable and necessary

measures to prevent transfers from the account of a Brazilian

public official aimed at concealing their criminal origin, the

Swiss government said in a statement.

Swiss prosecutors have been working for years to identify

assets and bring forward prosecutions in relation to a sprawling

international corruption case linked to Brazilian state-run oil

company Petrobras.

"We confirm that this matter, which involves several

financial institutions, has been resolved for Pictet," Pictet

said in a statement.

"It represents neither an admission of guilt nor an

acceptance of liability on the part of Pictet and is not related

to its asset management, asset servicing or alternative assets

entities," the private bank added.

The payments were made between June 2010 and May 2013 from

an account held in the name of an offshore firm whose beneficial

owner was a Petrobras employee, the Swiss government said.

The former Pictet manager approved transfers of assets that

originated from corrupt payments for the operation of oil rigs

and totaled more than $4.1 million, the government added.

He was found guilty of aggravated money laundering the

government alleged was made possible by organisational

shortcomings at Pictet.

Brazil's so-called Car Wash probe, known in Portuguese as

Lava Jato, began in 2014 with the arrest of a currency dealer

and mushroomed into the country's biggest ever graft scandal, in

which hundreds of executives, officials and politicians have

been convicted.

($1 = 0.8126 Swiss francs)

(Reporting by Ariane Luthi;

Editing by Dave Graham and Emelia Sithole-Matarise)