Swiss private bank BSI has launched an appeal against sanctions imposed by Switzerland’s financial watchdog FINMA over its role in the 1Malaysia Development Bhd (1MDB) scandal.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The bank said that it will specifically challenge the regulator’s evaluation of facts, and believes that the measures ordered are unlawful and disproportionate under the applicable principles of administrative law.
"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 Swiss lender said in statement.
The bank said that it has been in continuous contact with the regulator regarding matters related to 1MDB since the end of 2013, and has taken remedial measures where required. It also closed all client relationships associated with the sovereign wealth fund 1MDB in early 2015.
However, the regulator’s communication of the matter has tarnished the reputation of the bank and its staff, the bank said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"Accordingly, while BSI acknowledges certain internal shortcomings in the past, BSI believes that FINMA’s decision, its timing as well as the manner in which FINMA decided to communicate it were wholly inappropriate," BSI said.
In May, FINMA ordered BSI to pay CHF95m in profits for serious breaches of anti-money laundering rules, and dissolution of BSI after being taken over by EFG International.
