BSI: Federal Prosecutor opens investigation for money laundering

BSI, the oldest bank in the canton of Ticino, is under fire for involvement in the scandal of the Malaysian fund 1Malaysia Development Bhd. The private bank in Lugano risks heavy penalties. First, the central bank of Singapore has ordered BSI to stop all the activities of the local subsidiary BSI Bank Ltd. The fund 1Malaysia Development Bhd, established in 2009 by Prime Minister of Malaysia, Najib Razak, is accused of having embezzled more than 650 million dollars of capital of public companies to divert them to offshore accounts payable at the same premier.

The Singapore authorities have also imposed BSI Singapore to a penalty of $ 9.7 million for having violated the regulations against money laundering. Moreover, the central bank sent to the judicial authorities the names of six senior executives of the bank to check for involvement in criminal offenses.

While BSI announced a reshuffle at the top with the CEO Stefano Coduri who has resigned with immediate effect. Coduri will be replaced by Councillor Roberto Isolani. BSI has assured full cooperation with the authorities of both Switzerland and Singapore. The authorities in Malaysia and at least six other nations, including the United States, have launched an investigation into corruption 1Mdb.

Meanwhile, the Office of the Swiss Confederation (MPC) has opened a criminal case against the BSI based on the information detected by the conduct in connection with the criminal procedure 1Mdb deal as well as those contained in the decision of the FINMA, the Federal authorities supervision of financial markets. The Mpc suspected the existence of shortcomings in the functioning of the internal organization of the bank such as not to prevent the commission of offenses. Finma, the end of its enforcement process, BSI also accused of having seriously violated the legal provisions relating to money laundering and impeccable integrity requirement.