With an almost unprecedented intensity the Monetary Authority of Singapore has ordered the shut down of Switzerland’s BSI Bank in Singapore. Thus a year-long scandal now comes to an end, the aftermath of this money-laundering impropriety is still to unfold.
Once again, as quite often in recent years in banking, it is all about greed and short-term thinking. Swiss bankers dazzled by profits and success and considering themselves being something akin to alchemists, gathered assets that were doubtful from the beginning. And it all happened far away from good old Switzerland, so that the option of new business growth seemed so unbelievably attractive – being in Asia, precisely in Singapore – the most booming financial center of the world.
Apparently even the local authorities remained quiet for quite a long time. And so this case could evolve, grow and entangle a lot of additional persons and parties. It is actually rather astonishing that this case was not stopped earlier.
Time to Act – With Swiss Knowledge
The more the situation worsens the safer the culprits so often feel. And finally this was the time to act for Singapore – as the case of 1MDB seemed more an more to become a enormous reputational risk for Singapore, as a financial center as well as for the regulator itself.
Although the culprits seem to have a Swiss background, it is also thanks to the knowledge and experience of the Swiss regulator Finma, that actions have now been taken. The rest is history and another proof for all the people pretending that the bankers have lost even the slightest sense of credibility.
