IBTimes UK

The Central Bank of Singapore has ordered the closure of the local branch of Swiss bank BSI, which was linked to a money-laundering scandal at Malaysia's state fund 1MDB.

The regulator said: "The Monetary Authority of Singapore (MAS) announced today that it has served BSI Bank Limited (BSI Bank) notice of intention to withdraw its status as a merchant bank in Singapore for serious breaches of anti-money laundering requirements, poor management oversight of the bank's operations, and gross misconduct by some of the bank's staff."

MAS added that it has asked the state prosecutors to investigate six senior executives of BSI Bank, including its former chief executive, for possible criminal offences.

Two Singaporean executives of the bank are already facing charges in the city-state, Southeast Asia's financial hub.

The statement also mentioned that this is the first time since 1984 that MAS has cancelled the licence of a merchant bank.

IBTimes UK