SINGAPORE—Singapore’s central bank said on Tuesday it would withdraw the license of a Swiss private bank operating in the city-state and fine two large banks, the latest in a wave of coordinated moves by global regulators to close in on fund flows related to alleged corruption at Malaysian state fund 1Malaysia Development Bhd., or 1MDB.
The Monetary Authority of Singapore said it would fine DBS Bank Ltd. and UBS Group AG’s Singapore branch 1 million Singapore dollars (US$726,126) and S$1.3 million, respectively, for failures in anti-money-laundering controls relating to their handling of 1MDB fund flows.
The central bank said it would also withdraw the merchant banking license of Falcon Private Bank Ltd’s Singapore branch for what it called “persistent and severe lack of understanding” of its regulations, and fined it S$4.3 million. MAS said it understands the branch manager, Jens Sturzenegger, was arrested by Singapore police earlier this month in connection with the 1MDB matter. Mr. Sturzenegger couldn’t be immediately reached for comment and it isn’t clear if he is represented by a lawyer.