Switzerland’s Falcon Private Bank has announced it will cease operating next year, as it is in “advanced negotiations” around transferring its business to an unnamed competitor.

The bank, which has been embroiled in the multi-billion-dollar 1MDB money laundering scandal, said it would continue serving clients during the transition period.

The bank said in a statement that the decision to shut the bank had come following a strategic review, and despite a “far-reaching” restructure and “complete repositioning” three years ago.

“The exit from private banking activities will be a controlled and ord...