Singapore central bank orders BSI's operation to close down

Record ID: 102188

  • Title: Singapore central bank orders BSI's operation to close down
  • Date: 24th May 2016
  • Summary: SINGAPORE (MAY 24, 2016) (REUTERS) (PART MUTE) VARIOUS OF BUILDING WHERE BSI'S SINGAPORE OFFICE IS LOCATED
  • Embargoed: 8th June 2016 11:22
  • Keywords: BSI 1MDB Malaysia Switzerland central bank
  • Location: SINGAPORE
  • City: SINGAPORE
  • Country: Singapore
  • Topics: Crime/Law/Justice,Crime
  • Reuters ID: LVA0014J624AT
  • Aspect Ratio: 16:9
  • Story Text: Singapore's central bank on Tuesday (May 24) ordered BSI's operations in the city-state to close down as Switzerland opened criminal proceedings against the private bank based on its investigation into transactions by Malaysia's troubled state fund, 1MDB.
    The Monetary Authority of Singapore (MAS) said it had withdrawn Swiss-based BSI Bank's status as a merchant bank in Singapore and directed it to shut down for serious breaches of anti-money laundering requirements and other lapses. It is the first time for MAS to withdraw its approval for a merchant bank since 1984.
    In a statement, MAS said it has referred to the public prosecutor the names of six current and former members of BSI Bank's senior management and staff to evaluate whether they have committed criminal offences.
    The investigations in Switzerland and Singapore surrounding 1Malaysia Development Bhd (1MDB) focus on alleged fraudulent financial transactions that were used to funnel money to politically-connected individuals and possible money laundering.
    The Malaysian fund, whose advisory board is chaired by Malaysian Prime Minister Najib Razak, was also probed by Malaysian authorities.
    The Malaysian attorney general's office in January cleared Najib himself of any criminal offences or corruption, declaring that $681 million deposited into his personal bank account was a gift from Saudi Arabia's royal family.
    Singapore's white collar police, the Commercial Affairs Department (CAD), have discovered a web of murky transactions at BSI, charged two people in connection with its investigations, frozen bank accounts and questioned bankers in what it described as its most complex cross-border investigation ever.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2016. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register