Singapore issues bans regarding Malaysian 1MDB money laundering scandal
19 Dec 2017

The Monetary Authority of Singapore (MAS) has issued two more Prohibition Orders against individuals linked to the 1Malaysia Development Bhd (1MDB) state fund money laundering scandal.

On Tuesday it announced a lifetime PO against Mr Yeo Jiawei and a three-year PO against Mr Kevin Scull.

The regulator had earlier served notices of intention to issue POs against Mr Yeo and Mr Scully in October and May 2017 respectively.

The latest actions POs bring to date a total of eight such orders involved in 1MDB-related breaches.

According to MAS, Yeo, a former wealth manager of BSI Bank, was investigated by the Commercial Affairs Department (CAD) on 1MDB-related matters and convicted by the State Courts of Singapore on a number of charges, including money laundering, cheating, and tampering of witnesses during CAD’s investigation.

The PO will prohibit Yeo from providing any capital markets and financial advisory services as well as from acting as a director of any capital markets and financial advisory services firm in Singapore.

Scully was the chief executive officer of NRA Capital Pte (NRA), a licensed financial adviser which had been appointed to perform the valuation of PetroSaudi Oil Services Limited (PSOSL).

MAS found that Mr Scully had failed to ensure that NRA’s valuation of PSOSL was carried out with sufficient care, judgement and objectivity.

Following ‘careful consideration of Scully’s written representations and the relevant facts,’ MAS said it has decided to proceed with issuing the PO against him.

The PO will prohibit Scully from providing any financial advisory services and also acting as a director of, or becoming a substantial shareholder of any financial advisory services firm in Singapore.

The 1MDB scandal kicked off after the Wall Street Journal claimed that it had seen evidence that traced $700m of 1MDB’s funds to Malaysian Prime Minister, Najib Razak’ personal bank accounts.

A number of allegations of corruption across several jurisdictions have since followed, and the Swiss financial regulator has referred to 1MDB as a case of “blatant and massive corruption”.

Some investigators have estimated that around $6bn has been misappropriated.

Advance your CPD minutes for this content, by signing up and using the CPD Wallet

FREE CPD Wallet

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.