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SINGAPORE: The Monetary Authority of Singapore (MAS) issued lifetime ban orders against a former banker for his role in the 1MDB scandal that saw him receive US $ 5 million (S $ 6.8 million) in “secret profits,” it said. the authority early Friday. tomorrow (October 23).
Mr. Kevin Michael Swampillai, former Representative and Director of the Wealth Management Services Department of BSI Bank Limited, Singapore Branch (BSIS), received the bans at the conclusion of an authority investigation.
They went into effect on Thursday.
From 2012 to 2013, Swampillai and his then subordinate Yeo Jiawei helped Malaysian state-owned strategic development company 1Malaysia Development Berhad (1MDB) to “restructure several of its joint venture interests.”
In the course of assisting 1MDB, Mr. Swampillai and Yeo channeled a portion of the fund’s management fees to an entity owned by Mr. Swampillai. This was done without the knowledge and authorization of BSIS.
“In total, Mr. Swampillai received around US $ 5 million in secret proceeds at the expense of and without the knowledge of BSIS,” MAS said.
The former BSI director also “deliberately” made false statements to 1MDB’s auditors, KPMG Malaysia, in an attempt to “improperly influence” the outcome of an audit that was carried out on the 1MDB trust fund investments.
MAS said Swampillai misrepresented that the assets held by one of 1MDB’s investments, PetroSaudi Oil Services, were liquid in nature and mostly cash, “even though it knew that PetroSaudi Oil Services’ assets comprised two drillships.”
“Mr. Swampillai’s actions have given MAS reason to believe that he will not carry out regulated activities with honesty,” the authority said.
He has been permanently prohibited from carrying out any activity regulated under the Securities and Futures Law and from providing any financial advisory services under the Financial Advisors Law.
You are also prohibited from participating in the “management, acting as a director, or becoming a substantial shareholder of any financial advisory and capital market services company” under both laws.
MAS withdrew BSIS’s merchant bank license in May 2016 and also imposed financial penalties of S $ 13.3 million for violating a MAS notice that prevents money laundering and the fight against terrorist financing.
In July 2017, Yeo was sentenced to four and a half years in jail for money laundering and cheating.
He had established multiple suspicious transactions involving 1MDB and admitted that he secretly obtained at least $ 3.5 million from the illicit transactions. He laundered a portion of the money by transferring at least $ 500,000 to his parents’ bank account.
The former estate planner had already been serving a 30-month sentence on charges of perverting the course of justice by manipulating key witnesses to thwart the Department of Commercial Affairs (CAD) investigation into his involvement.
