SINGAPORE - Swiss and Singapore authorities have allowed EFG International to acquire its troubled Swiss rival BSI SA, which is caught up in the massive money-laundering probe of beleaguered Malaysian state fund 1MDB.
The Swiss Financial Market Supervisory Authority (FINMA) approved the combination, while the Monetary Authority of Singapore (MAS) allowed the transfer of the assets and liabilities of the Singapore subsidiary, BSI Bank Ltd, which is being shut down, to the Singapore branch of EFG Bank, BSI said in a statement on Tuesday (May 24).
The bank also said that group CEO Stefano Coduri has resigned with immediate effect.
The board of directors has appointed Mr Roberto Isolani, currently a member of the board of BSI, to replace Mr Coduri. He will be responsible for running the Bank and guaranteeing a smooth integration with EFG.
With regard to the investigations into 1MDB, BSI said it has co-operated fully with both FINMA and MAS.
BSI said it remains well capitalised with excellent liquidity and solvency ratios.
The financial penalties levied by both regulators will be paid from BSI's general reserves for banking risks.
Said the Swiss bank: "Clients of BSI Bank (in Singapore) are assured that both BSI and EFG are working for a fast and smooth transition. The Singapore subsidiary also has the full support of its parent bank."
BSI also said the regulatory approval process in other jurisdictions is on track and the deal is still expected to close by the fourth quarter of this year.