"The OAG suspects deficiencies in the internal organization of the BSI SA bank," the OAG said in a statement. "It is believed that due to these deficiencies, the bank was unable to prevent the commission of offences currently under investigation in the criminal proceedings relating to 1MDB."

In February, Swiss bank EFG International (>> EFG International AG) agreed to buy BSI from Brazil-based BTG Pactual (>> Grupo BTG Pactual) for 1.33 billion Swiss francs ($1.34 billion).

In a separate statement, Swiss financial watchdog FINMA said it found BSI in breach of money laundering regulations in connection with 1MDB.

(Reporting by Joshua Franklin; Editing by Maria Sheahan)

Stocks treated in this article : EFG International AG, Grupo BTG Pactual