Singapore’s central bank will cancel the license of a Swiss private bank operating in the city state and fine two large banks, the latest moves taken by global regulators to deal with alleged corruption at Malaysian state fund 1Malaysia Development Bhd. (1MDB).
The Monetary Authority of Singapore said it will fine DBS Bank Ltd. and UBS Group AG’s Singapore branch S$1 million (US$726,126) and S$1.3 million, respectively, for failing to institute adequate controls against money laundering in relation to the handling of 1MDB fund flows, the Wall Street Journal reports.
The central bank said it will also cancel the merchant-banking license of Falcon Private Bank Ltd.’s Singapore branch for what it called “persistent and severe lack of understanding” of its regulations, and fined it S$4.3 million, the newspaper said.
The Monetary Authority said the branch manager, Jens Sturzenegger, was arrested by Singapore police earlier this month in connection with the 1MDB investigation.
Singapore, a global financial center, has been seeking to repair its reputation after banks under its supervision were implicated in alleged illicit money flows related to 1MDB, the report said.
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