Swiss-based Falcon Private Bank has been through turbulent times since the scandal broke about the Malaysia state fund 1MDB. Further trouble seems to lie ahead, according to a report in the media.
Falcon Private Bank with its headquarters in Zurich may be about to lose its banking license in Switzerland, according to a report by «Reuters» newswire, which cited sources who requested to remain anonymous. The Swiss federal banking regulator (Finma) may in April still withdraw the license because the bank doesn’t fulfill the requirements anymore.
The winding-up of the bank’s activities are in preparation and a redundancy plan for the staff is being drawn up, according to the report. Finma, bank, and its owners in Abu Dhabi chose not to comment on the source's information, according to «Reuters».
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The regulator had fined the bank in connection with the 1MDB corruption scandal and given the bank three years to develop a new business model. Finma seems not to be satisfied with the progress of the work and in October is said to have given the bank a further extension of the deadline until April.
Falcon is trying to sell parts of the assets under management and talks are ongoing about an asset deal, according to the report.
