malaysia

1MDB probes no impact on business, says Abu Dhabi’s Falcon Private Bank

March 09, 2016

Falcon Private Bank chief executive Eduardo Leemann says its Singapore branch is helping authorities probing into 1MDB. – Falcon Private Bank pic, March 9, 2016.Falcon Private Bank has not seen an impact on its business following publicity about an investigation into the activities of a Malaysian sovereign wealth fund, the Swiss bank’s chief executive said.

The Wall Street Journal reported last year that investigators had traced US$681 million (RM2.6 billion) from an account at Falcon Private Bank in Singapore to accounts in Malaysia they believed belonged to Prime Minister Datuk Seri Najib Razak.

Falcon, owned by Abu Dhabi sovereign wealth fund International Petroleum Investment Company, has said it was in contact with Singapore’s central bank and would cooperate with authorities. 

The state investor, 1Malaysia Development Berhad, is being investigated by several authorities, including Malaysia, Switzerland and the United States. 

In response to reporters’ questions, Falcon’s chief executive Eduardo Leemann said today he had seen no impact on the bank’s business from the publicity surrounding the investigation. 

“We are in contact with regulators around the world constantly,” Leemann said. “Whenever regulatory issues crop up we are 100% cooperative.”

He was speaking at the inauguration of Falcon’s office in Dubai International Financial Centre for its wealth and asset management arm to serve clients in the Middle East, Eastern Europe and elsewhere.

The Middle East accounts for about US$2.5 billion of its global US$18 billion assets under management.

Falcon’s Dubai office has a licence to offer clients services, including discretionary mandates, structured products, lending facilities and other advisory capabilities, said Erich Pfister, global head of private banking. – Reuters, March 9, 2016.