Swiss private bank EFG International which last year took over troubled rival BSI for SFr1bn has announced its chief executive will step down at the end of the year.

Joachim Straehle will retire and be replaced by Giorgio Pradelli, the bank’s finance director, Zurich-based EFG announced on Wednesday.

Mr Straehle’s task of integrating Lugano-based BSI became much harder in May last year when Swiss financial supervisor Finma revealed “serious breaches” by BSI of money laundering regulations related to the corruption scandal surrounding Malaysian sovereign wealth fund 1MDB. Singapore ordered the closure of the local BSI operation.

The BSI takeover deal had been announced just three months earlier.

EFG said on Wednesday that Mr Straehle, who will be 60 next year, had agreed to retire following his “successful leadership and delivery of the transformative project to acquire and integrate BSI into EFG.”

EFG International reported SFR138.4bn in revenue-generating assets under management at the end of June, and underlying net profit in the first half of the year of SFr74.5m.

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