S’pore finds control failings in 3 banks

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“The fund flows being investigated include those connected with Good Star Limited (Seychelles), Aabar Investments PJS Limited (BVI), Aabar Investments PJS Limited (Seychelles), and Tanore Finance Corp (BVI).”

In its own statement, the Monetary Authority of Singapore (MAS) said its examinations of financial institutions with 1MDB-related fund flows revealed lapses in anti-money laundering controls and it would be taking action.

In its inspection of DBS Bank Ltd (DBS), Standard Chartered Bank, Singapore Branch (SCB), and UBS AG, Singapore Branch (UBS), preliminary findings revealed instances of control failings in all three banks, and in some cases, weaknesses in the processes for accepting clients and monitoring transactions.

It said supervisory examinations, which began in March last year, found lapses and weaknesses in anti-money laundering (AML) controls in these financial institutions.

MAS said the lapses were serious and would be met by firm regulatory actions against the banks. It said breaches of AML regulations were also found in its ongoing inspection of the Singapore branch of Falcon Private Bank.

MAS said its examination of licensed money changer — Raffles Money Exchange — found weak management oversight, inadequate risk management practices and internal controls. and that it was finalising regulatory action against the firm.

Singapore’s investigations into various 1MDB-related fund flows through the country started in March last year and are still in progress.

Civil complaints filed by the United States Department of Justice on Wednesday claimed Low had laundered hundreds of millions of illicit funds into the US, which funded real estate purchases and a lavish lifestyle.

The filings also claimed Low had taken cash siphoned from 1MDB to pay casino bills, including US$12 million (RM48.68 million) to Caesars Palace in Las Vegas and US$13.4 million to the owner of the Venetian Las Vegas casino.