Is Falcon threatened with the last act?

Since the involvement in the scandal over the Malaysian sovereign wealth fund 1MDB, the Zurich private bank has had turbulent times. Now, according to media reports, Falcon is facing another break.

Falcon Private Bank, headquartered in Zurich, threatens to lose its banking license. This reported the agency “Reuters” with reference to several anonymous sources. According to the report, the Swiss Financial Market Supervisory Authority (Finma) could withdraw the license from the institute this April. This is because the private bank no longer meets the requirements for the activity.

Preparations are now underway for the winding up of the institute, which belongs to the Abu Dhabi State Fund. A social plan is evidently in the works for Falcon employees. Neither Finma, nor the bank and its owners in the Middle East wanted to confirm the report to «Reuters».

Looking for buyers

In the context of the corruption scandal involving the Malaysian sovereign wealth fund 1MDB, Falcon had lost control and given the institute three years in 2016 to set up a new business model. However, the work has apparently not progressed to the satisfaction of Finma – the authority set another deadline until April last October.

Falcon continues to try to sell part of its client assets under management. Discussions are therefore underway with interested parties about an “asset deal”.

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