BSI and EFG making transfer plan, BSI remains solvent

Swiss private banks BSI and EFG International are working to devise a transfer plan that will allow for an orderly closure of BSI's unit in Singapore.

The move involves Zurich-based private bank EFG International taking over BSI, a deal that has already been approved by Swiss and Singapore regulators, and is expected to be completed by the fourth quarter.

The Monetary Authority of Singapore (MAS) has said it will allow the transfer of the Singapore subsidiary's assets and liabilities to EFG in Singapore, or to BSI in Switzerland.

"Both BSI and EFG are currently working on a transfer plan to be submitted to MAS," it told The Straits Times.

EFG is also helping to address staff morale, an EFG spokesman said.

An MAS spokesman said: "Customers are, however, assured that BSI Bank would not be closing down immediately.

"The bank remains solvent and has the full support from its parent bank in Switzerland."

The closure of BSI's Singapore unit over anti-money laundering rule violations comes amid a deepening probe into troubled Malaysian state fund 1Malaysia Development Berhad.

Meanwhile, security at the Singapore bank has been tightened, with more guards at its building. Staff on the ground floor declined to say if any BSI clients visited yesterday.

gleong@sph.com.sg

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