Basler Kantonalbank will face a money-laundering investigation around its dealings with Swiss investment firm ASE, Aargauer Zeitung reported Dec. 15.

The Swiss lender acted as the deposit bank of ASE, which defrauded hundreds of its clients in a so-called "snowball investment scheme" in 2012. During the initial proceedings, the money-laundering charges against Basler were put in a separate case that was eventually dismissed by the court.

However, the High Court in the canton of Aargau has now approved an appeal lodged by 300 of the affected ASE clients and has ordered a money-laundering investigation into Basler.