Zurich-based bank EFG International has revealed plans to accelerate its acquisition of BSI’s Singapore business, which was recently linked to the 1Malaysia Development (1MDB) state fund scandal.
The business will now be acquired from Brazil's BTG Pactual Group by the end of November at the latest, EFG International said in a statement.
The transfer of business includes BSI current private banking, treasury and wealth management services and its clients and staff in Singapore.
EFG International, which agreed to buy BSI from BTG in a cash and shares transaction valued at CHF1.33bn in February 2016, added that overall terms of the deal with BTG for the acquisition of the entire BSI business won’t change.
EFG International CEO Joachim Straehle said: “With the measures announced today, we aim at integrating BSI’s business in Singapore earlier than originally planned. This will provide for additional security and stability for the respective clients and employees, which we warmly welcome at EFG.
“Thanks to the flexibility of all parties involved, the steps to be taken in Singapore will allow us fully to concentrate on the future and jointly grow our business further in this important region.”
In May this year, the Monetary Authority of Singapore (MAS) ordered BSI Bank, to shut down its Singapore operations for breaching money laundering rules and poor management oversight.
The regulator has also slapped a fine of SGD13.3m ($9.6m) on the BSI unit for 41 breaches that include failure to perform due diligence on high-risk accounts and monitor suspicious customer transactions.