Falcon Private Bank fortunes tumbled after its dealings with 1MDB surfaced. Now, the Swiss private bank has successfully fought back against Swiss regulator Finma in court.
Switzerland's financial regulator was relatively mild: Finma ordered Falcon Private Bank to cough up 2.5 million Swiss francs ($2.6 million) for its dealings with the 1MDB corruption scandal. By contrast, the Monetary Authority of Singapore yanked the bank's license in the city-state, levied a S$4.3 million ($3.3 million) fine, and arrested the bank's branch manager, Jens Sturzenegger.
Falcon appealed to a Swiss tribunal against the Swiss penalty – and won a partial victory. The bank had its fine lowered to 1.8 million francs, the court ruled (in German). The court acknowledged severe violations of due care by Falcon. The ruling is not yet in force, and can be appealed to Switzerland's highest court.
