Swiss court orders Falcon bank to hand over ‘illegal’ 1MDB profits

The Swiss Federal Court has rejected an appeal by Falcon Private Bank against “illegally generated profits” that Switzerland’s financial watchdog seized from the bank in 2016. The CHF2.5 million ($2.56 million) is linked to the Malaysian 1MDB scandal.  In a decision published on Friday, the court said it had ruled in favour of the Swiss Financial Market Supervisory Authority (FINMA) over “illegally generated profits” it ordered to be surrendered in 2016.  Falcon was accused of seriously violating money-laundering rules by failing to carry out background checks into transactions and business relationships relating to the 1Malaysia Development Berhad, or 1MDB sovereign fund, registered in Switzerland, Singapore and Hong Kong.  After an appeal by Falcon, the Federal Administrative Court reduced the amount confiscated to CHF1.7 million in April 2018. Judges said the bank could deduct general management fees from the confiscated earnings.  On Friday, Switzerland’s highest court ...

 
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