Falcon Private Bank, which has ceased operations, is accused of helping one of its former directors to embezzle $3.8 million (CHF3.5 million) from Malaysia’s sovereign wealth fund 1MDB. The bank’s ex-CEO, Eduardo Leeman, also faces related charges at the Federal Criminal Court in a case that started on Monday. Both parties deny the charges.
The Swiss authorities have come down hard on banks involved in the 1MDB scandal. Abu Dhabi-owned Falcon Private Bank was ordered to hand over CHF2.5 million in illegally obtained profits in 2016 and subsequently decided to stop operating in Switzerland. The same year, BSI Bank was forced to sell its business and shutter its doors under pressure from the financial regulator. Other banks were reprimanded by the financial regulator in relation to 1MDB.
Swiss prosecutors followed up by filing criminal charges against Falcon, leading to the current trial in Bellinzona, southern Switzerland. It is the first time that a bank has been brought to trial for alleged money laundering on Swiss soil.
Clear signal
Five years ago the head of the Swiss Financial Market Supervisory Authority (FINMA) complained that fines alone were not having the desired effect of preventing money laundering.
The Falcon trial is one clear signal that the Swiss authorities are stepping up action against miscreant banks.
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Falcon exits Swiss private banking after 1MDB scandal
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The company says it has changed its name to “Falcon Private” but will remain under the supervision of the Swiss Financial Market Supervisory Authority (FINMA) while it hands over its private banking clients and assets to the unnamed bank. “Three years ago, we gave Falcon Private Bank a new profile through innovative ideas and unconventional…
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The enquiry estimates that some $4 billion (CHF4 billion) has been syphoned out of the Malaysian sovereign wealth fund into the pockets of corrupt officials. The suspects, which include Malaysian Prime Minister Najib Razak and other family members, are thought to have used the money to buy art works, property and even finance the movie…
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Two Zurich bankers at Coutts Bank were fined by the Swiss authorities for failing to report suspicious transactions linked to the 1MDB scandal.
Swiss court orders Falcon bank to hand over ‘illegal’ 1MDB profits
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The Federal Court has rejected an appeal by Falcon Private Bank against money that Switzerland’s financial watchdog seized in 2016.
Rothschild bank sanctioned for role in 1MDB scandal
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FINMA has concluded its investigations into the Malaysian 1MDB scandal by finding Rothschild Bank in breach of anti-money laundering regulations.
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The Swiss banks were among five financial institutions named in a joint statement by Singapore’s financial regulator, police force and state prosecutor on Thursday. The Lugano-based BSI bank had previously been shut down in both Switzerland and Singapore as a result of its 1MDB activities. The latest update from Singapore followed an announcement from the…
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