The continuing fall-out from the 1MDB case – enforcement actions by MAS

10 November 2017

Singapore continues to see a fall-out from the 1MDB case with more enforcement actions by MAS against individuals involved in breaches related to the 1MDB case. On 1 November 2017, MAS announced that it had issued six-year prohibition orders against Mr Ang Wee Keng Kelvin (Mr Ang) and Mr Lee Chee Waiy (Mr Lee).

Mr Ang, a former remisier of Maybank Kim Eng Securities was convicted for bribing Mr Lee with $3,000 to expedite the preparation of a valuation report on PetroSaudi Oil Services Limited (PSOSL). Mr Lee who was the head of research at NRA Capital had accepted the bribe from Mr Ang and applied inappropriate methodology and assumptions in the valuation of PSOSL.

Pursuant to the prohibition orders:

  • Mr Ang can neither provide any capital market and financial advisory services nor own, manage or act as a director of, any capital market and financial advisory services firm in Singapore
  • Similarly, Mr Lee can neither provide any financial advisory services nor own, manage or act as a director of, any capital market and financial advisory services firm in Singapore.

MAS also announced its intention to issue a lifetime ban on Mr Yeo Jiawei, a former Wealth Manager of BSI Bank who has been convicted for money laundering, cheating; and tampering of witnesses in connection with the 1MDB case.

The table below provides a quick snapshot of the aftermath of 1MDB related breaches:

Closure Prohibition Orders (PO) Intention to issue PO Fines
2 Banks 6  individuals

  • 2 individuals – lifetime ban
  • 1 individual – 15 years
  • 1 individual – 10 years
  • 2 individuals – 6 years
2 individuals

  • 1 individual – lifetime ban
  • 1 individual – 3 years
8 banks

~S$30 million

The enforcement actions clearly demonstrate that the implications from the 1MDB related breaches on the financial services industry are far from over.  It is very clear that MAS expects the financial institutions to increase their risk awareness and strengthen their AML controls, MAS also expects individuals working in the financial services industry to maintain high standards of integrity.

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