Swiss financial regulators have initiated criminal proceedings against the nation’s private bank BSI amid allegations that the bank helped launder huge sums for some individuals linked to Malaysian state investment fund 1MDB.
Switzerland’s Office of the Attorney General said the decision to open criminal proceedings against BSI was based on information prosecutors have gathered from a long-running probe of 1MDB, the Wall Street Journal reported.
Swiss law allows for the prosecution of companies that fail to prevent corruption by third parties.
Also on Tuesday, Singapore’s central bank ordered the local arm of BSI Bank to shut down its operations, and imposed a fine a fine of US$9.7 million, after finding that the bank had breached money-laundering regulations.
Following the announcements, BSI’s head office in Switzerland said in a statement that its group CEO Stefano Coduri will step down with immediate effect.
Authorities in Switzerland and Singapore are among those in at least six countries investigating the alleged misappropriation of funds from 1MDB.
The Malaysian state fund has denied any wrongdoing and said it is cooperating with authorities.
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