Swiss federal prosecutors have opened criminal proceedings against Zurich-based Falcon Private Bank for allegedly failing to prevent suspected money laundering linked to 1MDB, the scandal-hit Malaysian state fund, prosecutors said on Wednesday.
Falcon becomes the second Swiss bank after BSI to face a criminal investigation by Switzerland's Office of the Attorney General (OAG) over links to 1Malaysia Development Berhad (1MDB).
Falcon, owned by Abu Dhabi's International Petroleum Investment Co (IPIC), said in a statement it would cooperate with the OAG to help ensure a speedy resolution to the investigation.
The OAG said in January it suspected misappropriations from 1MDB totaled roughly $4 billion, while alleging last week that a Ponzi scheme may have been set up to conceal an alleged $800 million fraud.
Founded by Malaysian Prime Minister Najib Razak, who chaired its advisory board, 1MDB is the subject of money-laundering investigations in at least six countries including Switzerland, Singapore and the United States.