DBS, UBS and Standard Chartered have become embroiled in the
scandal surrounding 1MDB, with Singapore's central bank saying it had
found lapses and weaknesses related to the beleaguered Malaysian wealth
fund.
The Monetary Authority of
Singapore (MAS) said on Thursday that it found "lapses and weaknesses"
in anti-money-laundering controls at the banks' Singapore operations and
that it would be taking actions against them.
The preliminary investigation
found "extensive layers of transactions and subterfuge aimed at
disguising the nature of certain activities and fund flows," with shell
companies in various jurisdictions used to conceal the funds' true
beneficiaries.
In May, the MAS also completed a related investigation of BSI Singapore,
which resulted in a decision to shut down that private bank, calling it
at the time "the worst case of control lapses and gross misconduct that
we have seen in the Singapore financial sector."
The MAS said the deficiencies at
the three banks were related to lapses in specific processes and by
individual officers, which would be met by "firm regulatory action," but
the central bank added that the inspections didn't find pervasive
weakness or staff misconduct, unlike at BSI Bank.
Read more on CNBC
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