BSI Shut by Singapore as Swiss Start Probe; EFG Takes Over Bank
- CEO Stefano Coduri resigns as EFG says BSI takeover to proceed
- Enforcement proceedings to start against two former bankers
Singapore Shuts BSI Unit Amid Probe Into 1MDB Links
Singapore is closing Swiss bank BSI SA’s unit in the city-state and Switzerland began criminal proceedings against the firm, as investigations into a troubled Malaysian state fund reverberate throughout the private bank’s international operations.
The Monetary Authority of Singapore said it will withdraw BSI Bank Ltd.’s license for breaches of money laundering rules and impose S$13.3 million ($9.6 million) in financial penalties on the BSI unit for 41 breaches, including its failure to conduct due diligence on high-risk accounts and monitor suspicious customer transactions. Singapore authorities have also referred six senior BSI executives to the public prosecutor, including the private bank’s former chief executive officer in the city state and his deputy.