(Bloomberg) -- Swiss private bank BSI, which is being acquired by EFG International AG, appealed a 95 million Swiss franc ($99 million) penalty issued by Switzerland’s financial regulator over the lender’s ties to 1Malaysia Development Bhd.
“BSI believes that Finma’s procedure leading to the decision was flawed in many respects and Finma’s decision as such is disproportionate and incorrect,” the Lugano, Switzerland-based company said in e-mailed statement on Thursday, after lodging an appeal with Switzerland’s Federal Administrative Court.
BSI was ordered to give up 95 million Swiss francs of profit because the bank “ignored clear warning signals,” about the risk of some of its transactions as it pursued higher-margin returns, Mark Branson, chief executive officer of the Swiss regulator known as Finma, said last month.
Finma’s statement that the bank was in a serious breach of anti-money laundering rules “severely harmed the reputation of the bank and its employees,” BSI said.
Vinzenz Mathys, a spokesman for Finma, had no immediate comment. Rocco Maglio, a spokesman for the court, said he couldn’t immediately confirm receipt of the appeal.
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