Singapore fined Credit Suisse, UOB after 1MDB probe

8 years ago - Published in Finance, Fiscal & Legal

Singapore said Tuesday it had fined Credit Suisse and United Overseas Bank (UOB), a local lender, for breaches of the city-state's anti-money laundering laws relating to a corruption scandal at Malaysian state fund 1MDB.

The Monetary Authority of Singapore (MAS), the country's central bank, said it also imposed lifetime bans on two bankers and a 15-year prohibition order on a third following a two-year review of lenders involved in 1MDB-related transactions.

The Monetary Authority of Singapore (MAS) said it has imposed a 700,000 Singapore dollars ($505,000) fine on Credit Suisse and a 900,000 Singapore dollars ($649,000) penalty on UOB. 

"These include weaknesses in conducting due diligence on customers and inadequate scrutiny of customers’ transactions and activities," the statement said, adding however that MAS did not detect "pervasive control weaknesses within" the two banks.

Following MAS' latest announcement, Credit Suisse and UOB said in statements to the media that they acknowledged the findings by the central bank. Both banks said they have worked to strengthen their anti-money laundering controls.

"Notwithstanding that the Monetary Authority of Singapore (MAS) review findings show there are no pervasive anti-money laundering control weaknesses, we acknowledge the outcome of the review and regret that we have fallen short of the MAS' and our own high standards," a Credit Suisse spokesperson said.

Other banks found for various breaches of AML requirements in relation to the 1MDB scandal include BSI Bank, Falcon Bank, DBS, UBS AG, Standard Chartered Bank, and Coutts.

Financial penalties amounting to S$29.1 million in aggregate have been imposed on eight banks (BSI Bank, Falcon Bank, DBS, UBS AG, Standard Chartered Bank, Coutts, Credit Suisse, and UOB) for various breaches of AML requirements.

In addition to the financial penalties, BSI Bank and Falcon Bank have been shut down due to egregious failures of AML controls and improper conduct by senior management.