THE Money Authority of Singapore (MAS) will be shutting down BSI Bank for a series of grave offences, and has referred six members of staff to the Public Prosecutor to determine if they have committed crimes.
MAS announced in a statement on Tuesday that it served BSI Bank a notice of intention to withdraw its status as a merchant bank in Singapore.
The notice contains “serious breaches of anti-money laundering requirements, poor management oversight of bank’s operations, and gross misconduct by some of the bank’s staff”.
The announcement comes as Swiss financial regulators opened criminal proceedings against the bank in connection to allegations of corruption against controversial Malaysian state fund 1MDB.
According to BBC, Switzerland’s Office of the Attorney General (OAG) said it obtained information suggesting BSI could have prevented “the offences of money laundering and bribery of foreign public officials currently under investigations in the context of 1MDB”.
BSI Bank, owned by BSI Ltd in Switzerland, said in a statement that it would cooperate with the Swiss attorney-general, describing the case as “legacy issues and removing uncertainty for clients and staff in relation to 1MDB”.
SEE ALSO: 1MDB: Swiss attorney-general expands probe to include ex-Emirati officials
The decision to shut down the bank is based on three investigations made from 2011 to 2015, in which the regulator uncovered “multiple breaches” and a “pervasive pattern of non-compliance” within BSI.
MAS has also imposed financial penalties on BSI totaling about US$9.6m (SG$13.3m) for 41 breaches of MAS Notice 1014, Prevention of Money Laundering and Countering the Financing of Terrorism.
The six members referred to the Public Prosecutor include people from BSI’s senior management and staff. They are:
- Former CEO, Hans Peter Brunner
- Former deputy CEO, Raj Sriram
- Head of Wealth Management Services, Kevin Michael Swampillai, who is currently suspended
- Former senior private banker, Yak Yew Chee
- Former wealth planner, Yeo Jiawei, who has been charged for “various offences”
- Former senior private banker, Yvonne Seah Yew Foong
MAS’ managing director Ravi Menon said in the statement: “BSI Bank is the worst case of control lapses and gross misconduct that we have seen in the Singapore financial sector. It is a stark reminder to all financial institutions to take their anti-money laundering responsibilities seriously.
“Controls need to be robust, surveillance vigilant, and the management culture must emphasize professional integrity and risk consciousness.”
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