BSI Bank Appeals Regulator's 1MBD Sanctions

BSI Bank Appeals Regulator’s 1MBD Sanctions by Matthew Allen, SwissInfo.ch

Swiss-based private bank BSI is taking the country’s financial regulator to court to appeal “unlawful and disproportionate sanctions” imposed last month in relation to the bank’s business with the Malaysian sovereign wealth fund 1MDB.

The Swiss Financial Market Supervisory Authority (FINMA) has ordered BSI to disgorge CHF95 million ($99 million) in profits for “serious breaches” of anti-money laundering rules. FINMA also effectively closed down the BSI, whose business is being taken over by EFG Bank, and is taking action against two executives.

The FINMA investigation found BSI guilty of failing to properly scrutinise business dealings with politically exposed persons or to question why the bank was carrying out...