The Monetary Authority of Singapore has barred Swiss Falcon Private Bank from any new dealings in Singapore.
This comes in the wake of Falcon’s dealings with Malaysian state fund 1MDB, according to a finews.asia report.
It picked up the news from Swiss business newspaper Finanz und Wirtschaft (in German). However, finews.asia said, the newspaper did not say how it got the information.
Finews.asia contacted Falcon bank but its spokesman didn’t respond to requests for comment. A spokeswoman for MAS told finews.asia that as a matter of policy it would not comment on supervisory dealings of banks.
Falcon is one of a handful of banks including UBS which were named and shamed by MAS last month for their involvement with 1MDB.
After MAS’s chastisement, Reuters quoted a Falcon spokesman as saying: “With reference to the ongoing investigations by the Monetary Authority of Singapore on 1MDB-linked institutions and the statement released today, we would like to reiterate that we are in full cooperation with the authorities. We will comment further when the investigations are complete.”
Falcon is owned by one of the world’s leading sovereign wealth funds – Abu Dhabi’s International Petroleum Investment Company (IPIC). IPIC is involved in a legal tussle with 1MDB over payments from 1MDB which it says it never received.
In a submission to the London Court of International Arbitration last month, IPIC is claiming about USD6.5 billion from 1MDB and Malaysia’s finance ministry after a debt restructuring agreement between the companies went sour.
The news about Falcon comes in the wake of news that the former head of IPIC, Khadem al-Qubaisi, is under investigation by criminal authorities in Switzerland.
They are looking into allegations that al-Qubaisi, also the former chairman of Falcon bank, was part of an international conspiracy to embezzle money from 1MDB, the Financial Times had reported earlier.