Swiss Regulator May Penalize Six Banks Over 1MDB, Petrobas

Switzerland’s top financial regulator warned the risk of money-laundering has risen in Switzerland in recent years as the watchdog said it’s preparing to penalize six Swiss banks over their ties to alleged corruption in Malaysia and Brazil.

Widening corruption scandals at Malaysia Development Bhd and Brazilian oil producer Petroleo Brasileiro SA have prompted the regulator to look at more than 20 Swiss banks and their potential ties to the affairs, Finma Chief Executive Officer Mark Branson said Tuesday. He declined to name the banks or say what penalties are being considered.

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