Singapore: Money laundering 'detected'

Thursday, 21. July 2016 07:12

The Monetary Authority of Singapore (MAS) said they have revealed lapses in money laundering control in a number of financial institutions. The investigation found out that the following banks were not paying much attention to money laundering practices: BSI Bank, DBS Bank, Singapore branches of Standard Chartered Bank, UBS, and Falcon Private Bank and Raffles Money Change. BSI Bank faces loss of status of merchant bank after serious breaches have been found.

The probe into banks' practices has started as a part of the investigation into Malaysian state fund 1Malaysia Development Berhad (1MDB), now seen as a whirlpool for money from around Asia. Money flow from various investment funds into 1MDB and all related banks were engaged in complex web of murky transactions.

"[The MAS examinations] revealed extensive layering of transactions and subterfuge aimed at disguising the nature of certain activities and fund flows. In some instances, shell or unauthorised companies domiciled in various jurisdictions were used to conceal the true beneficiaries of the funds," said the MAS statement, and added that it "will be taking actions" against these financial institutions.

Singapore's financial-heavy Straits Times Index was down 0.24% at 2,938 points at 7:14 a.m. CET.

Image: EPA / Karl Mathis

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Breaking the News / ZR