Due to Raj Sriram’s negligence, BSIS has not submitted the reports, the statement said. (representative)
Singapore:
A banker of Indian descent has been given a 10-year ban and 24-month conditional warning for failing to report a suspicious transaction involving imprisoned Malaysian Prime Minister Najib Razak’s infamous 1Malaysia Development Berhad (1MDB) company.
Raj Sriram, the former deputy CEO and head of private banking at BSI Bank Limited’s Singapore branch (BSIS), was banned and warned on Monday to report the suspicious transaction, the Monetary Authority of Singapore (MAS) and the police. of Singapore (SPF) said in a statement.
The ban, which came into effect on Monday, was issued by the MAS, while the conditional warning was issued by the SPF’s Commercial Affairs Department (CAD), Channel News Asia reported.
The ban order prohibits Raj Sriram from “providing financial advisory services or participating in the management of, acting as a director of, or becoming a substantial shareholder of, a financial advisory firm under the Financial Advisers Act,” the joint statement said.
CAD investigated Raj Sriram regarding his role in BSIS’s business dealings and relationships with the subsidiaries of 1MDB and Aabar Investments PJS Limited, the alleged subsidiary of Abu Dhabi-based Aabar Investments PJS.
SPF and MAS said the department found there were “reasonable grounds for BSIS to file suspicious transaction reports related to 1MDB-related transactions,” as required in a MAS Notice to Commercial Banks on Preventing Money Laundering and Counteracting of terrorist financing.
Due to Raj Sriram’s negligence, BSIS has not submitted the reports, the statement said.
SPF and MAS said that in consultation with the chambers of the Attorney General, the CAD has issued a conditional warning in lieu of prosecuting Raj Sriram for two violations under the MAS Act.
Under the warning, Raj Sriram paid an amount of SGD 150,000 to the Singapore Government’s Consolidated Fund and pledged to abstain from criminal conduct for a period of 24 months.
He will also continue to work with CAD in its 1MDB-related investigations and will not take up any board or similar positions beginning September 6 last year for a period of four years.
The statement also said Raj Sriram’s behavior warranted a 10-year ban as he held a high position in BSIS and his negligence contributed to BSIS failing to file the suspicious transaction reports.
Ho Hern Shin, deputy director of financial supervision at MAS, said: “BSIS, of which Mr. Sriram was deputy CEO and head of private banking, was a key conduit for tainted funds in the 1MDB debacle.” She noted that MAS revoked BSIS’s license in May 2016 due to “serious and repeated violations” of laws preventing money laundering and terrorist financing.
The ultimate responsibility for ensuring a financial institution’s compliance with such laws and regulations rests with its board of directors and senior management, the channel quoted Ho as saying.
SPF and MAS indicated that they are serious about complying with these laws and reporting suspicious transactions.
CAD Director David Chew said: “The suspicious transaction reporting regime is a key pillar of Singapore’s approach to money laundering and countering terrorist financing.
“Singapore authorities will not hesitate to take firm action against reporters, or their officers, who intentionally or negligently fail to submit suspicious transaction reports when required by law.” 1MDB was a state fund established in 2009 with the help of Malaysian financier Jho Low to promote economic development.
Najib Razak, who was Prime Minister of Malaysia from 2009 to 2018, co-founded 1MDB and chaired its advisory board until 2016.
1MDB raised billions of dollars in bonds between 2009 and 2013 for use in investment projects and joint ventures.
The United States Department of Justice (DoJ) conducted its largest-ever kleptocracy inquiry, saying $4.5 billion was funneled into offshore bank accounts and shell companies, many of which had ties to Low.
According to media reports, Malaysian authorities claim that billions are still missing.
Najib Razak, 69, is serving a 12-year prison sentence in Malaysia from August 2022 for 1MBD-related offences.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)
