Singapore’s central bank imposed financial penalties amounting to S$1.6 million ($1.2 million) on Credit Suisse Group AG and United Overseas Bank Ltd. following a two-year review of banks involved in fund flows linked to 1Malaysia Development Bhd., or 1MDB.

A S$700,000 financial penalty was imposed on Credit Suisse while UOB has to pay S$900,000 for breaches of anti-money laundering requirements and control lapses, the Monetary Authority of Singapore said in a statement Tuesday.

"These include weaknesses in conducting due diligence on customers and inadequate scrutiny of customers’ transactions and activities," the central bank said. "MAS did not however detect pervasive control weaknesses within these banks."

The central bank also issued lifetime prohibition orders against Jens Fred Sturzenegger, former Singapore branch manager of Falcon Private Bank Ltd., as well as Yak Yew Chee, an ex-employee of BSI Bank Ltd. in Singapore, and took further actions against other individuals. The two banks were shut down by the central bank last year.

Singapore has vowed stronger action after the central bank found anti-money laundering lapses at financial-services companies linked to 1MDB. Singapore had also previously banned former Goldman Sachs Group Inc. banker Tim Leissner over breaches linked to the 1MDB. 1MDB, which is at the heart of multiple probes across the globe, has consistently denied wrongdoing.

Source:
courtesy of BLOOMBERG

by Kyunghee Park

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