Abu Dhabi-Owned Swiss Bank Tangled in 1MDB Scandal to Wind Down

Switzerland’s Falcon Private Bank Ltd., owned by Abu Dhabi’s Mubadala Development Co., is in advanced negotiations about a sale of assets after which it will cease private banking activities following a failed attempt to move past a money laundering scandal.

Falcon plans to sell its client portfolio, front-office staff and subsidiaries to another Swiss wealth manager and exit private banking next year, the bank said in a statement on Monday. The decision follows months of speculation about its future and intentions of its shareholder.

“We have concluded that, especially in the current environment, the controlled cessation of Falcon’s banking ...