Ex-head of Falcon Bank branch in S’pore jailed

SINGAPORE: A Swiss banker was jailed for seven months here yesterday for money laundering and other offences related to movement of funds allegedly linked to 1Malaysia Development Fund (1MDB).

Jens Fred Sturzenegger, 42, who headed the Singapore branch of Swiss lender Falcon Private Bank, was also fined S$128,000 (RM398,000) after he pleaded guilty at a district court, making him the first foreigner linked to the 1MDB scandal convicted in Singapore, AFP reported.

Singapore last year kicked out Falcon Bank and another Swiss Bank BSI for what regulators called massive lapses in financial controls. Swiss banks were allegedly used to transfer illicit funds.

The United States and Switzerland have also launched investigations into the fund but only Singapore has meted out convictions so far.

Sturzenegger was initially slapped with 16 charges, including six for allegedly failing to report suspicious transactions totalling US$1.7 billion in March 2013.

Another 10 charges were for giving false information to Singapore authorities who were investigating the use of the city-state’s banking system as a conduit for the transfer of illicit funds involving 1MDB.

He pleaded guilty to three charges of money laundering and three charges of giving false information. The other charges were taken into consideration in the sentencing.

Three Singaporean private bankers from BSI have already been jailed in relation to the scandal.