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Business

Singapore orders BSI bank unit shut

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Business

Singapore orders BSI bank unit shut

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COMING UP:Singapore orders BSI bank unit shut

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00:00:02
>> One of the biggest fall outs yet in the global investigation into Malaysia's 1MDB finance scandal, Singapore's Monetary Authority shutting down Swiss Bank BSI's operations in the city-state on Tuesday for breaking money laundering laws. It's the first time in more than 30 years that it's done this to a bank.
00:00:20
Reuters Anshuman Daga in Singapore says this will send a ripple effect across the finance sector.>> This has set off a red alert on all the other banks and financial institutions. The Central Bank hasn't named other banks but in a harsh statement, it has said it is conducting supervisory reviews of several other banks and financial institutions, through which it has discovered suspicious and unusual transactions.
00:00:50
They're not giving any names but they are making clear that they will take action to safeguard the integrity and the reputation of Singapore's financial center.>> 1MDB wasn't directly named in the announcement but Switzerland's Attorney General says it's opening up criminal proceedings against BSI for its links to the fund set up by Malaysian Prime Minister Najib Razak in 2009.
00:01:14
1MDB is under investigation for money laundering in at least six countries. The fund and Razak say they haven't done anything wrong but in February, Swiss authorities said they've discovered about $4 billion that have been funneled into 1MDB through Malaysian state companies. BSI Group CEO, Stefano Coduri, says he's stepping down immediately, as Singapore officials hand over the names of six senior BSI staffers suspected of crimes to the public prosecutor.