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MAS Directs 1MDB Linked Bank To Shut Down In Singapore

GERRY ONG May 24, 2016
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MAS Directs 1MDB Linked Bank To Shut Down In Singapore

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By: Gerry Ong | 24th May 2016

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The Monetary Authority of Singapore (MAS) has directed merchant bank BSI Bank to shut down in Singapore. Citing “Serious breaches of anti-money laundering requirements, poor management oversight of the bank’s operations, and gross misconduct by some of the bank’s staff.”. In addition, 6 members of BSI Bank’s senior management were referred from MAS to the public prosecutor to evaluate if they had committed criminal offences.

MAS also claimed in it’s statement that several of the bank staff had committed wilful acts of misconduct, such as, making material misrepresentations to auditors , abetting improper valuations of assets; and taking instructions from persons other than customers’ authorised representatives on matters relating to customers’ accounts

BSI Bank was linked to 1MDB

BSI Bank has been linked to troubled Malaysian state fund 1Malaysia Development Berhad. In an announcement made earlier today, Switzerland’s Office of the Attorney General (OAG) has opened criminal proceedings against BSI relating to 1MDB. The Swiss Financial Market Supervisory Authority (FINMA) has already found BSI to be in breach of money laundering regulations in connection with 1MDB. In it’s press statement, FINMA also cited lapses such as

“A deposit of 20 million US dollars, for example, the bank was happy to accept the client’s explanation that the funds involved were a “gift”. In another case, an account was credited with more than 98 million US dollars without any effort to clarify its commercial background.”

FINMA has already ordered the disgorgement of profits amounting to 95 million swiss francs and has also launched enforcement proceedings against two of the bank’s former top managers.

Worst Case

In it’s media release, Mr Ravi Menon, Managing Director of the MAS, said,

“BSI Bank is the worst case of control lapses and gross misconduct that we have seen in the Singapore financial sector… ”

BSI Bank is the first merchant bank that has been ordered to close in over 30 years, the last case being Jardine Fleming in 1984.

The closure of BSI Bank should not cause any worry though, as in the same statement, the MAS assured clients and customers of BSI Bank that they were solvent and had assets in excess of liabilities.

 

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EasyRates is Singapore’s preferred portal for home loans, refinancing, equity loans, overseas loans, personal and business loans, having long standing partnerships with more than 20 banks. Our experienced consultants are advocates for our customers and work hard to ensure you get the best packages available. The best part? Our services are 100% free of charge. Here at EasyRates we pride ourselves on providing unbiased advice on all loans and financial products and putting our customers above all else. So what are you waiting for? Get a FREE Mortgage consultation today!

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GERRY ONG

Former banking lizard, startup ninja and trainer turned writer. Personal Finance writer by day, cycling enthusiast by night, lover of rainy days and starry nights always.

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MAS Directs 1MDB Linked Bank To Shut Down In Singapore

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By: Gerry Ong | 24th May 2016

[sharify]

Like/ Follow us on Facebook/ Twitter To See More Cool Posts!

The Monetary Authority of Singapore (MAS) has directed merchant bank BSI Bank to shut down in Singapore. Citing “Serious breaches of anti-money laundering requirements, poor management oversight of the bank’s operations, and gross misconduct by some of the bank’s staff.”. In addition, 6 members of BSI Bank’s senior management were referred from MAS to the public prosecutor to evaluate if they had committed criminal offences.

MAS also claimed in it’s statement that several of the bank staff had committed wilful acts of misconduct, such as, making material misrepresentations to auditors , abetting improper valuations of assets; and taking instructions from persons other than customers’ authorised representatives on matters relating to customers’ accounts

BSI Bank was linked to 1MDB

BSI Bank has been linked to troubled Malaysian state fund 1Malaysia Development Berhad. In an announcement made earlier today, Switzerland’s Office of the Attorney General (OAG) has opened criminal proceedings against BSI relating to 1MDB. The Swiss Financial Market Supervisory Authority (FINMA) has already found BSI to be in breach of money laundering regulations in connection with 1MDB. In it’s press statement, FINMA also cited lapses such as

“A deposit of 20 million US dollars, for example, the bank was happy to accept the client’s explanation that the funds involved were a “gift”. In another case, an account was credited with more than 98 million US dollars without any effort to clarify its commercial background.”

FINMA has already ordered the disgorgement of profits amounting to 95 million swiss francs and has also launched enforcement proceedings against two of the bank’s former top managers.

Worst Case

In it’s media release, Mr Ravi Menon, Managing Director of the MAS, said,

“BSI Bank is the worst case of control lapses and gross misconduct that we have seen in the Singapore financial sector… ”

BSI Bank is the first merchant bank that has been ordered to close in over 30 years, the last case being Jardine Fleming in 1984.

The closure of BSI Bank should not cause any worry though, as in the same statement, the MAS assured clients and customers of BSI Bank that they were solvent and had assets in excess of liabilities.

 

[mk_fancy_title tag_name=”h6″ size=”20″ font_weight=”bold” margin_bottom=”0″ font_family=”Muli” font_type=”google”]About EasyRates[/mk_fancy_title][mk_divider style=”thick_solid” margin_top=”0″]

EasyRates is Singapore’s preferred portal for home loans, refinancing, equity loans, overseas loans, personal and business loans, having long standing partnerships with more than 20 banks. Our experienced consultants are advocates for our customers and work hard to ensure you get the best packages available. The best part? Our services are 100% free of charge. Here at EasyRates we pride ourselves on providing unbiased advice on all loans and financial products and putting our customers above all else. So what are you waiting for? Get a FREE Mortgage consultation today!

[mk_fancy_title tag_name=”h6″ size=”20″ font_weight=”bold” margin_bottom=”0″ font_family=”Muli” font_type=”google”]About the author[/mk_fancy_title][mk_divider style=”thick_solid” margin_top=”0″]
10881626_10154167626923975_6319766155891124382_n

GERRY ONG

Former banking lizard, startup ninja and trainer turned writer. Personal Finance writer by day, cycling enthusiast by night, lover of rainy days and starry nights always.

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GERRY ONG

Gerry has spent time working in 5 different banks in various capacities, across a range of functions from back to middle and front office. After leaving banking, he spent time working on market research for consumer banking with a focus on the Chinese and Singapore market. He now serves as a home loan consultant and business manager of Easyrates.

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