1MDB: Singapore imposes life ban on BSI Bank’s former rep Swampillai

SINGAPORE: The Monetary Authority of Singapore (MAS) has issued lifetime Prohibition Orders (POs) against Kevin Michael Swampillai, a former representative and head of the Wealth Management Services Department of BSI Bank Ltd, Singapore Branch (BSIS).

These POs were issued at the conclusion of an investigation conducted by the MAS and took effect on Oct 22, 2020, the central bank said in a statement issued early yesterday.

From 2012 to 2013, MAS said Swampillai and his then subordinate, Yeo Jiawei, had assisted the Malaysian stateowned strategic development company, 1Malaysia Development Bhd (1MDB), to restructure several of its joint venture interests.

In the course of doing so, Swampillai and Yeo had channelled a portion of the fund management fees or “secret profits” to an entity beneficially owned by Swampillai, without BSIS’ knowledge and authorisation.

In total, Swampillai received about US$5 million in secret profits at the expense of, and without the knowledge of BSIS, it said.

MAS noted that Swampillai had also deliberately made misrepresentations to 1MDB’s auditors, KPMG Malaysia, in an a empt to improperly influence the outcome of an audit carried out by them on 1MDB’s fiduciary fund investments.

The central bank said he misrepresented that the assets held by Petro-Saudi Oil Services Ltd (PSOSL) – one of 1MDB’s investments – were liquid in nature and were mostly cash, despite having knowledge that PSOSL’s assets comprised two drill ships.

“Swampillai’s actions have given MAS reason to believe that he will not carry out regulated activities honestly,” it said.

Due to the severity of his misconduct, MAS has permanently prohibited him from performing any regulated activity under the Securities and Futures Act (SFA) and providing any financial advisory service under the Financial Advisers Act (FAA).