The Switzerland-headquartered bank insists it is "working normally" after the Singapore regulator ordered BSI Bank be stripped of its merchant banking licence.

Switzerland-headquartered BSI, the parent of BSI Bank, which is losing its merchant banking licence for anti-money laundering and other offences, is “working normally”, it says. 

Earlier this week (see here) the Monetary Authority of Singapore said it is stripping BSI Bank of its merchant banking licence for a string of offences. This is the first time the regulator has taken such action against a bank since 1984.

“BSI wishes to clarify that the bank in Singapore is operating normally. The decision by MAS to withdraw the bank’s status as a merchant bank will take place only at a future time given that MAS 'will allow the transfer of the Singapore subsidiary’s assets and liabilities to the Singapore branch of EFG or the parent entity, BSI SA’. Also, MAS has stated that 'the bank is solvent and has assets in excess of its liabilities and commitments',” BSI said in a statement yesterday.

BSI said it is not affected by the financial penalties levied by MAS and FINMA, the Swiss regulator, as they will be paid through its general reserves for banking risks. Furthermore, the bank is in a very comfortable position in terms of liquidity, it said.

Lugano-headquartered BSI is in the process of being acquired by fellow Swiss private bank EFG International from Brazil’s BTG Pactual.

“BSI’s acquisition by EFG has been approved by FINMA on 24 May. The MAS also allows the transfer of our Singapore subsidiary’s assets and liabilities to the Singapore branch of EFG,” BSI said. This is an "important milestone" in creating one of the largest Swiss private banks and providing "long-term stability" for clients, it added, and it is focusing on a "smooth and quick integration with EFG."