MAS fines Credit Suisse, UOB over 1MDB-related dealings, wraps up probe

PETALING JAYA: The Monetary Authority of Singapore (MAS) has concluded its two-year investigation into 1Malaysia Development Bhd-related (1MDB) transactions with fines against Credit Suisse and United Overseas Bank (UOB).
The latest fines bring action taken to a total of S$29 million (RM89.6 million) in penalties on eight banks, closure of two banks and prohibition orders (POs) on four individuals.
MAS has notifed three more current and former bank employees of its intention to issue POs against them, ranging from three to six years.
The latest fines of S$700,000 and S$900,000 imposed on Credit Suisse and UOB respectively were over breaches of anti-money laundering (AML) rules.
MAS said in a statement yesterday breaches of AML rules and control lapses by Credit Suisse and UOB, included weaknesses in conducting due diligence on customers and inadequate scrutiny of customers’ transactions and activities. However, there was no pervasive control weakness detected within the banks.
Credit Suisse and UOB have been directed to appoint independent parties to assess and confirm to MAS that rectification measures have been effectively implemented.
“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,” it noted.
MAS has issued lifetime POs against Jens Fred Sturzenegger and Yak Yew Chee, as well as a 15-year PO against Seah Mei Ying effective May 29, 2017.
Sturzenegger was the manager of Falcon Private Bank Ltd’s Singapore branch, while Yak and Seah were employees of BSI Bank Ltd.
A notice of its intention to issue a PO against Ang Wee Keng Kelvin, a former representative of Maybank Kim Eng Securities Pte Ltd, as well as CEO of NRA Capital Pte Ltd Kevin Scully and its former head of research Lee Chee Waiy, has also been given.
MAS’s supervisory review of financial institutions involved in 1MDB-related flows is the most extensive it has ever taken. It included detailed onsite inspections, offsite examination and analysis of information obtained from the financial institutions and foreign regulators, and close coordination with the Attorney-General's Chambers and the Commercial Affairs Department.
The review uncovered a complex web of transactions involving numerous shell companies and individuals operating in multiple jurisdictions, including the United States, Switzerland, Hong Kong, Luxembourg and Malaysia.

MAS said the good progress achieved to date would not have been possible without close international cooperation. Investigations are still ongoing in many jurisdictions and Singapore will continue to render its assistance where needed, it added.