The scandal that engulfed the Malaysian state fund 1MDB involves yet another Swiss bank: Credit Suisse, Switzerland’s No. 2, has been ordered to pay a fine imposed by the regulator in Singapore for violating the country's anti-money-laundering regulation.
The Monetary Authority of Singapore (MAS) today concluded its two-year investigation into the 1MDB scandal and imposed fines on two more financial-services companies, the authority said in a statement.
Credit Suisse (CS) has to pay S$0.7 million (about 0.5 million Swiss francs) and UOB Bank of Singapore has been ordered to pay a fine of S$0.9 million (0.6 million Swiss francs).
Violating Money-Laundering Laws
The two banks violated anti-money-laundering regulation in several cases and failed in the control (due diligence) of their clients and transactions. MAS didn’t give more details about the shortcomings.
The two banks have been ordered to take action to prevent such violations in future and have been told to take vigorous action against the staff who committed the violations.
Regretful Credit Suisse
Credit Suisse told finews.com that it regretted «that we have fallen short of the MAS’ and our own high standards». The bank promised to ensure that the control mechanisms worked effectively. It will donate the profit from the transactions in question to a worthy cause in support of the local community.
Today’s report marks the conclusion of the investigations by MAS into a scandal that involved billions of dollars that went into the coffers of corrupt people. The money belonging to the Malaysian state fund was moved and washed via Singapore and to a large extent with the help of Swiss banks. The case has dealt a massive blow to the credibility of the financial market in the city-state.
Draconian Measures
Following its investigation, Singapore revoked the private-banking licenses of BSI and Falcon Private Bank and order the closure of their offices. Several bankers were convicted to years in prison and received life-time professional bans in the country. UBS, Standard Chartered, Coutts and DBS also were fined, but escaped harsher treatment.
Remaining Vigilant
MAS boss Ravi Menon today said that the investigation had become a turning point for the financial market of Singapore and that the conclusions drawn had helped the country's banks to go forward stronger and with a better awareness.
Menon added that the price for keeping the financial market of Singapore clean was to maintain the highest possible level of vigilance.
