Swiss private banking group EFG International has concluded the integration of BSI's operations in Singapore.
The transfer of the Singapore business included client relationships as well as employees, and is the first step in the gradual process of integration of Swiss bank BSI into EFG.
The process of migrating BSI’s operations into EFG will be done market by market, EFG said in a statement.
EFG agreed to buy BSI from Brazil's Grupo BTG Pactual in a cash-stock deal valued at CHF1.33bn in February 2016. But in May 2016, Swiss financial regulator Finma accused BSI of breaching money laundering regulations in connection with the Malaysian state fund 1Malaysia Development Berhad (1MDB) scandal.
In the same month, the Monetary Authority of Singapore (MAS) ordered BSI to close its Singapore business owing to violations of anti-money laundering requirements, poor management oversight, and gross misconduct by some of its staff.
In August 2016, EFG announced plans to reduce its acquisition price for BSI, mainly due to the bank’s involvement in the 1MDB scandal. Early this month, EFG completed the acquisition of BSI for CHF1.06bn.
Legal steps related to the acquisition are expected to be wrapped up in the second quarter of 2017, while transfer of BSI’s operations to EFG’s IT platform is anticipated to be completed by the end of 2017.