Private bank EFG International’s new acquisition, a BSI business, has suffered a net money outflow of 17.8 billion francs ($18 billion) in the period from January 2016 to October 2016 amid sanctions regarding the scandal around the Malaysian state fund.
BSI, Swiss private bank EFG International’s newly acquired business, has suffered a net money outflow worth 17.8 billion Swiss francs ($18 billion) during the period January 2016 to October 2016. The private bank had stated earlier today that it had completed the acquisition of the business from Brazil’s Grupo BTG Pactual SA for a preliminary cost of 1.06 billion, 10 million more than the estimated cost in August. According to the private bank’s website BSI net assets fell mostly because of the “announcements relating to the Malaysia mater in May”.
In May 2016 Singapore had ordered BSI to close all of its operations in the city state. In the mean time Switzerland began criminal proceedings against EFG in what became the biggest international crackdown on financial entities dealing with Malaysian state fund IMDB.
EFG’s assets fell by 0.6 billion francs during the period January 2016 to October 2016. With around 148 billion francs in assets under management, the combined bank ranks barely in sixth position among Swiss private banks instead of fifth as it originally intended.