Falcon Private Bank said it is in advanced talks for the sale and transfer of its client portfolio, front-office staff and subsidiaries to another Swiss private bank.
The wealth manager, which was involved in the 1MDB scandal, plans to exit from all private banking activities in 2021.
The company has also ‘changed its purpose and is renamed Falcon Private,’ it said.
‘Three years ago, we gave Falcon Private Bank a new profile through innovative ideas and unconventional solutions,’ said Roberto Grassi, chairman of the board of directors
‘However, after a strategic review and evaluating various options, we have concluded that, especially in the current environment, the controlled cessation of Falcon’s banking activities is the best way to protect the interests of our stakeholders.
‘We remain committed to providing our clients a high level of service quality during this transition period and we appreciate the financial support of the shareholder,’ he added.
Falcon said further details will be announced in due course when an agreement is reached.
The bank will remain subject to banking regulation and FINMA supervision including meeting its capital requirements.
Falcon was at the centre of the multi-billion-dollar 1MDB scandal that brought down former Malaysian prime minister Najib Razak and his government.
Following the investigation, the Monetary Authority of Singapore ordered BSI Bank and Falcon Private Bank’s Singapore branch to shut down in 2016.