BSI says business as usual despite transfer of assets
SINGAPORE — Troubled Swiss bank BSI on Wednesday (May 25) clarified that it is business as usual amid a takeover that has been allowed to take place by the authorities.
SINGAPORE — Troubled Swiss bank BSI on Wednesday (May 25) clarified that it is business as usual amid a takeover that has been allowed to take place by the authorities.
Adding that the bank is in a “very comfortable position in terms of liquidity”, it said in a press statement: “The decision by the Monetary Authority of Singapore (MAS) to withdraw the Bank’s status as a merchant bank will take place only at a future time ... BSI continues to operate as usual.”
On Tuesday, MAS announced that it has ordered Swiss private bank BSI to shut down its operations here, citing serious breaches of anti-money-laundering rules.
The central bank added that it was withdrawing BSI’s status as a merchant bank in the Republic and imposing S$13.3 million in fines on the bank for 41 breaches, including its failure to conduct due diligence on high-risk accounts and to monitor for suspicious customer transactions on an on-going basis.
In its statement on Wednesday, BSI noted MAS’ remarks that it would allow the transfer of BSI’s assets and liabilities to its parent bank, BSI SA, in Switzerland or the Singapore branch of rival Swiss bank EFG International.
EFG is in the midst of buying over BSI SA — an acquisition that was approved by the Swiss Financial Market Supervisory Authority (FINMA) on Tuesday even as Swiss authorities commenced criminal proceedings againt BSI SA.
The Singapore central bank also said that BSI “is solvent and has assets in excess of its liabilities and commitments”, BSI pointed out.
The Swiss bank reiterated that it is not affected by the financial penalties levied by MAS and FINMA as they will be paid by using the bank’s reserves for banking risks.
For a second day in a row, all was quiet at BSI’s main office in Suntec Tower One. Employees streaming in and out of the office continued to ignore reporters camped outside the office and declined to comment.
Responding to TODAY’s queries on how the bank’s staff would be affected by its impending closure, BSI said: “The bank is operating normally and we are focused on serving our clients and ensuring a smooth integration with EFG, in line with plans.” ADDITIONAL REPORTING BY LOUISA TANG