Singapore convicts third private banker in 1MDB scandal

SINGAPORE: Singaporeconvicted a third private banker yesterday in connection with the international money-laundering scandal involving 1MDB in Malaysia.

Yeo Jiawei, a Singaporean former wealth manager with Swiss bank BSI, was convicted after a 12- day trial of witness-tampering and obstructing the city-state’s 1MDBlinked investigations. He will be sentenced today. “I find the accused to be inconsistent and an unreliable witness,” said Judge Ng Peng Hong in delivering his verdict.

Yeo, 33, is also charged with money-laundering, cheating and forgery but will be tried next year on those counts. Allegations that huge sums were misappropriated from the Malaysian state fund through money-laundering have triggered a massive corruption scandal.

Singapore, a regional financial hub known for its transparency and strong stance against corruption, last year launched a probe into alleged unlawful fund flows linked to 1MDB.

BSI and another Swiss bank, Falcon, were kicked out of the citystate this year for what regulators called massive lapses in financial controls. Swiss banks were allegedly used to transfer illicit funds. Two other former private bankers from BSI have also been jailed in Singapore for fraud in connection with the case.

It was revealed during Yeo’s trial that he worked closely with Malaysian financier Low Taek Jho, also known as Jho Low.

Low helped set 1MDB up and played a key role in its decisions.

Singapore prosecutors had said Yeo “played a central role in many activities connected with the money-laundering case”.

Local authorities have seized nearly US$ 180 million in assets, with half linked to Low. — AFP