The Swiss bank is accelerating its purchase of BSI's Singapore business following recent action against the latter firm by the Singapore regulator.

EFG International has agreed with Brazil's BTG Pactual to buy the latter's BSI Bank (Singapore), which has had its merchant banking licence revoked in Singapore amid money laundering lapses, in an "accelerated asset deal".

Subject to getting the necessary regulatory clearance, it is planned that the migration of the acquired part of the business will be completed by the end of November this year "at the latest", Switzerland-headquartered EFG International said in a statement yesterday.

“With the measures announced today, we aim at integrating BSI’s business in Singapore earlier than originally planned. This will provide for additional security and stability for the respective clients and employees, which we warmly welcome at EFG. Thanks to the flexibility of all parties involved, the steps to be taken in Singapore will allow us fully to concentrate on the future and jointly grow our business further in this important region," said Joachim Straehle, chief executive of EFG International.

EFG International and BTG Pactual are in the process of obtaining the regulatory approvals required for the closing of the acquisition of BSI, announced on 22 February. The process is on track and is expected to complete in the fourth quarter of 2016, as announced previously.

In May, the Monetary Authority of Singapore said it was moving to revoke the merchant banking licence of BSI Singapore due to serious control lapses and misconduct around money laundering, in connection with payments involving 1MDB, the Malaysian state-controlled organisation which is the subject of major corruption allegations.

"Following the announcement by the Monetary Authority of Singapore (MAS) on 24 May 2016 in connection with BSI Singapore, EFG International and BTG Pactual have negotiated an accelerated asset deal whereby EFG Bank’s Singapore branch would acquire the agreed assets and liabilities of BSI Bank (Singapore) Ltd," the statement said.

"A binding term sheet including the conditions of an asset purchase agreement, which forms the basis of the transfer of business that is subject to MAS and court approval in Singapore, has been signed on 14 July 2016," it said.

The transfer of business includes BSI Bank (Singapore)'s private banking, treasury and wealth management services and its clients and staff, to the extent agreed in the term sheet.