Najib Razak

Swiss bank to be shut over Malaysia embezzlement scandal

A Swiss private bank accused of turning a blind eye to shady money transfers and willful defiance of regulators will face criminal proceedings and be liquidated for its alleged role in the suspected embezzlement of $4 billion from a Malaysian state fund.

In a two-pronged crackdown, authorities in Singapore on Tuesday ordered the closure of the local branch of BSI, which is based in Lugano, Switzerland, citing serious breaches of anti-money laundering requirements, poor management oversight and gross misconduct by some staff.

And the Swiss attorney-general's office said it had begun criminal proceedings against the bank, pointing to signs that money laundering and bribery...