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Singapore slaps fines on Credit Suisse & UOB in money laundering probe of Malaysian development fund

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Singapore slaps fines on Credit Suisse & UOB in money laundering probe of Malaysian development fund

6th June,2017

Singapore’s central bank has fined Credit Suisse and United Overseas Bank (UOB) for breaches relating to the scandal-hit Malaysian sovereign wealth fund 1Malaysia Development Berhad (1MDB), it said in a statement on Tuesday. 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. The two banks were found to have breached several anti-money laundering requirements.

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. The two banks were found to have breached several anti-money laundering requirements.

In addition to financial penalties imposed on the banks, the MAS also issued lifetime Prohibition Orders against a former Singapore branch manager of Falcon Private Bank, Jens Fred Sturzenegger, and two ex-employees of BSI Bank, Yak Yew Chee and Seah Mei Ying.

KYC Commentary: And the penalties keep coming.  Note here the “LIFETIME” prohibition order against the branch manager.  It would be great to see the figures for the cost of rectifying this non-compliance offence vs. the cost of compliance.  We have said recently that banks can rationalise the cost of a single penalty versus upgrading legacy systems.  Might we see regulators take a GDPR approach and look to proportion the penalties to match a % of annual revenues?

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