Europe

Swiss sanction RBS unit over lapses linked to Malaysian fund

The Swiss financial markets regulator is sanctioning a private bank linked to Royal Bank of Scotland for having "seriously breached" money laundering rules by failing to fully monitor its business with indebted Malaysian sovereign wealth fund 1MDB.

Regulator FINMA has ordered Coutts & Co. Ltd, a wealth manager with over three centuries of history, to hand over to the Swiss government "unlawfully generated profits" of 6.5 million Swiss francs ($6.6 million), and is considering enforcement measures against the employees responsible.

FINMA on Thursday cited "serious deficiencies" in the anti-money laundering processes at the Swiss arm of Coutts, the first Swiss bank to accept assets from individuals with what would become the Malaysian fund.

It said a total of $2.4 billion in 1MDB-related assets moved through Coutts accounts in Switzerland.