BSI $96 Million Penalty ‘Incomprehensible’ as Finma Rebuked (1)

A Swiss court threw out a 95 million Swiss franc ($96 million) penalty imposed on BSI Bank over its ties to the 1MDB scandal, calling the financial regulator’s calculation of the fine “incomprehensible.”

While BSI was responsible for “severe violations of supervisory provisions,” Finma’s methodology was flawed, the Swiss Federal Administrative Court said late Tuesday in a statement. The court referred the matter back to the regulator to reconsider the penalty.

“The confiscation has to correspond to the actual profit generated by the infringement,” the court said, but instead Finma chose to assess a 95-million franc penalty in return for ...