In the 1MDB scandal’s latest development, Singapore's banking watchdog has issued a 10-year ban against an ex-senior BSI banker for failing to report suspicious transactions.
The Monetary Authority of Singapore (MAS) has issued a 10-year prohibition order against Raj Sriram, ex-deputy chief and head of private banking at BSI’s Singapore unit (BSIS), according to a statement. This would ban him from providing financial advisory services or involvement in a financial advisory firm as a manager, director, or substantial shareholder for a decade.
Sriram was deemed negligent after not filing suspicious transaction reports for 1MDB-related transactions when there had been reasonable grounds to do so.
The investigation focuses on his role in dealings with the BSIS unit and relationships with 1MDB subsidiaries as well as Aabar Investments PJS Limited, ostensibly a subsidiary of Abu Dhabi-based Aabar Investments PJS.
Key Conduit
«BSIS, of which Mr Sriram was Deputy CEO and Head of Private Banking, was a key conduit for tainted funds in the 1MDB debacle,» said MAS deputy managing director of financial supervision Ho Hern Shin.
«The ultimate responsibility for ensuring a financial institution’s compliance with AML/CFT laws and regulations rests with its board of directors and senior management. MAS will take to task errant board and senior management members whose failures result in their financial institutions violating laws and regulations.» Shin indicated further.
In addition, the Commercial Affairs Department (CAD) also issued a 24-month conditional warning against Sriram, including the payment of S$150,000 to the Singapore government’s consolidated fund. As part of it, Sriram has committed to refrain from criminal conduct for 24 months while continuing to cooperate with CAD in 1MDB-linked probes. He has also agreed not to take any directorship positions or other similar functions for four years.
