The Monetary Authority of Singapore has completed its two-year review of banks involved in 1MDB-related transactions known to date – with surprising results.
In its latest regulatory actions, The Monetary Authority of Singapore (MAS) has fined Credit Suisse and United Overseas Bank (UOB), as well as issued bans against three bankers and served notice of its intention to impose the same regulatory action on three more.
The penalties against Credit Suisse and UOB, two banks which until now hadn't been believed to be ensnared in the billion-dollar graft scandal, comes after MAS concludes another round of inspections of 1MDB fund flows.
Costly Breaches
MAS fined Credit Suisse and UOB S$700,000 and S$900,000 respectively, for breaches of money-laundering law and countering the finance of terrorism.
The regulator said its inspections at the two banks revealed several breaches of anti-money laundering requirements and control lapses. These include weaknesses in conducting due diligence on customers and inadequate scrutiny of customers’ transactions and activities.
MAS did not however detect widespread control weaknesses within these banks.
Discipline Errant Staff
The Singaporean regulator has directed the banks to appoint independent parties to assess and confirm to MAS that measures to rectify the weaknesses have been out into place.
MAS has also instructed the management of Credit Suisse and UOB to take disciplinary measures, where appropriate, against errant staff. The banks are currently taking measures to address the weaknesses identified and strengthen their AML controls.
Banker Bans
In March, MAS issued lifetime POs against Jens Fred Sturzenegger and Yak Yew Chee, as well as a 15-year PO against Seah Mei Ying, with immediate effect.
More to follow.
