Singapore shuts down second Swiss bank linked to 1MDB money laundering
Falcon Private Bank had been operating in Singapore since August 2008, offering boutique private banking services
Singapore’s central bank on Tuesday shut down a second Swiss bank under investigation for alleged money laundering activities linked to Malaysian state fund 1MDB as it vowed strong action against potential violators.
The Monetary Authority of Singapore (MAS) said it had ordered Falcon Bank to cease its operations in the city-state because of “serious failures in anti-money-laundering (AML) controls and improper conduct” by senior management both at the head office in Switzerland and the local branch.
“Falcon Bank has demonstrated a persistent and severe lack of understanding of MAS AML requirements and expectations,” it said in a statement.
“Taking into account the totality of Falcon Bank’s conduct, MAS’ assessment is that the merchant bank will be unable to comply with these requirements and expectations going forward.”
The central bank said it fined Falcon Bank S$4.3 million (US$3.1 million) for 14 breaches of a law on preventing money laundering and countering the financing of terrorism.
Falcon Bank has demonstrated a persistent and severe lack of understanding of MAS AML requirements and expectations
MAS also said it received information that Falcon Bank’s Singapore branch manager, Jens Sturzenegger, had been arrested on October 5 by the Commercial Affairs Department (CAD), the Singapore government’s main white-collar crime investigation agency.