Singapore fines Credit Suisse, UOB

Singapore fined Credit Suisse Group and United Overseas Bank (UOB) a total of S$1.6 million ($1.2 million) as regulators completed a two-year review of banks involved in fund flows linked to 1Malaysia Development Bhd(1MDB).

Credit Suisse was fined S$700,000 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 on Tuesday. The regulator also issued lifetime bans against former employees of Falcon Private Bank and BSI Bank, which were shut down in Singapore last year.

“The two-year-long 1MDB-related review holds key lessons for both MAS and financial institutions in Singapore” following “abuses” linked to 1MDB fund flows, Ravi Menon, managing director at the Monetary Authority of Singapore, said in the statement. “The price for keeping our financial centre clean as it grows in size and inter-connectedness is unstinting vigilance.”

Singapore has vowed stronger action after the central bank found anti-money laundering lapses at financial-services companies linked to 1MDB. Singapore also previously banned former Goldman Sachs Group banker Tim Leissner over breaches linked to 1MDB.

The investment fund controlled by the Malaysian government has consistently denied wrongdoing. It’s at the heart of multiple investigations across the globe as authorities probe whether money flowed through and around 1MDB, and illegally into personal accounts.

A Malaysian parliamentary committee identified at least $4.2 billion in irregular transactions, some of which US prosecutors allege landed in Prime Minister Najib Razak’s personal bank account. Najib has denied wrongdoing.

Singapore has so far imposed a total of S$29.1 million in financial penalties on eight banks, including DBS Group Holdings, UBS Group, Coutts & Co and Standard Chartered, in relation to 1MDB. The MAS also issued orders banning four former bank employees from financial activities, and has notified another three individuals of its intention for similar action ranging from three to six years.