Singapore Shuts Falcon Bank Unit, Fines DBS and UBS Over 1MDB

Singapore’s central bank on Tuesday shut down a second Swiss bank in the city-state and fined banks DBS and UBS in its biggest crackdown on alleged money-laundering activities connected with Malaysian sovereign fund 1MDB. The Monetary Authority of Singapore (MAS) said in a statement it had ordered Zurich-based Falcon Private Bank’s Singapore branch to cease operating because of “a persistent and severe lack of understanding” of Singapore’s money-laundering controls. It also accused Falcon’s senior management in Switzerland and Singapore of “improper conduct”. In Zurich, the Financial Market Supervisory Authority (FINMA), ordered Falcon to turn over 2.5 million Swiss francs ($2.56 million) in what the watchdog said were illegal profits. It also said it has opened enforcement proceedings against two former Falcon executives, without citing them by name.