Swiss financialwatchdog FINMA initiated an investigationinto BSI SA's formerCEO for Asia, Hanspeter Brunner, Reuters reported July 13, citing Brunner's lawyer,Benno Hafner.

Brunner, alongwith other bankers, is facing scrutinyin Singapore in connection with the bank's ties with 1Malaysia Development Bhd.,or 1MDB, the subject of global money-laundering investigations. He is BSI for allegedly withholdinghis bonus.

BSI in June FINMA's May 23 decisionthat it committed serious breaches of money laundering regulations through its business dealings with 1MDB. The bank was orderedto shut down its unit in Singapore for "gross misconduct" related to moneylaundering.