BSI Bank appeals regulator’s 1MDB sanctions

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 certain financial services for 1MDB while charging exorbitant fees. On Thursday BSI hit back with an appeal to the Federal Administrative Court, arguing that FINMA had overstepped its authority in a manner that has “severely harmed the reputation of the bank ...