Switzerland’s Falcon Private Bank has confirmed that it is considering an exit from private banking and other options.
“The Board of Directors and the Executive Committee of Falcon Private Bank are evaluating a number of options, in consultation with Aabar, the Bank’s shareholder. One of those options includes exiting the private banking business,” the bank said in a statement.
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Falcon said that the options mulled are being done in a controlled and orderly manner to protect stakeholders’ interests.
The confirmation comes shortly after a Reuters report said that Falcon’s licence could be stripped off due to its inability to comply with regulatory norms.
The bank has been under the scanner for its embroilment in Malaysia’s 1MDB state fund scandal.
In 2016, the Monetary Authority of Singapore (MAS) withdrew the licence of Falcon’s Singapore branch in connection with the 1MDB scandal.
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By GlobalDataThe regulator accused the bank of serious failures in anti-money laundering controls and improper conduct by senior management.
This was followed by Swiss regulators launching criminal proceedings against the bank in connection with the scandal.
Last year, a report said that Falcon-owner Abu Dhabi wealth fund Mubadala Development is looking to offload Falcon Private Bank due to the fallout from 1MDB.
The 1MDB scandal involves the misappropriation of over $4.5bn from 2009 to 2014 and led to the ouster of former Malaysian prime minister Najib Razak.
