Here's how Falcon Bank neglected 1MDB’s red flags

"Head Office is watching you," a senior manager warned.

The orders to the employees at Falcon Private Bank's Singapore branch were loud and clear. They were told to process the transactions, and get them done on time.

This is part of what Swiss authorities alleged as serious breaches of anti-money laundering rules in Falcon's dealings with troubled 1Malaysia Development Bhd (1MDB) and a young Malaysian businessman with ties to the government.

Falcon managers ignored concerns raised by a number of bank employees, the Swiss regulator Finma said.

Due to the pressures from two board members tied to 1MDB, the bank's managers approved US$3.8 billion of asset transfers linked to the fund from 2012 to mid-2015.

"Although management's attention was drawn to these matters, it repeatedly failed to properly investigate the business relationships, specifically those with politically exposed persons, and high-risk transactions," Finma stated in a statement.

These allegations, shed light on how international banks allegedly aided in the misuse of 1MDB funds meant for economic development.

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