Falcon Private Bank signalled its winding down on Monday, as the Swiss wealth manager involved in 1MDB scandal said it was in advanced talks to transfer clients to another Swiss bank and exit private banking activities.

"We have concluded that, especially in the current environment, the controlled cessation of Falcon’s banking activities is the best way to protect the interests of our stakeholders," its chairperson Roberto Grassi said in a statement.

Last month, Reuters reported that the private bank owned by...