MAS slaps former BSI official with 10-year prohibition order over role in 1MDB

The official contributed to the bank’s failure to file STRs regarding 1MDB-related transactions.

The former Deputy CEO and Head of Private Banking of BSI Bank Limited Singapore Branch (BSIS), Raj Sriram, received a 10-year prohibition order (PO) from the Monetary Authority of Singapore (MAS) for his contribution to the bank’s failure to file suspicious transaction reports (STRs) regarding 1Malaysia Development Berhad (1MDB)-related transactions. 

Apart from the prohibition order, Sriram also received a 24-month conditional warning from the Singapore Police Force’s Commercial Affairs Department (CAD).

According to CAD’s investigation, BSIS did not file STRs as required under MAS’ Notice 1014 on the Prevention of Money Laundering and Countering the Financing of Terrorism – Merchant Banks, due to Sriram’s “neglect.”

Sriram had to pay $150,000 to the Singapore Government’s Consolidated Fund as part of the conditional warning. 
He also had to commit to refrain from criminal conduct for 24 months, continue to cooperate with CAD in its 1MDB-related investigations, and not accept any directorship positions or positions of similar substance or form for four years from 6 September 2021. 

The PO, on the other hand, prohibits Sriram from providing any financial advisory service or taking part in the management of, acting as a director of, or becoming a substantial shareholder of, any financial advisory firm under the Financial Advisers Act. The PO took effect on 10 October.

“BSIS, of which Mr Sriram was Deputy CEO and Head of Private Banking, was a key conduit for tainted funds in the 1MDB debacle. MAS withdrew BSIS’ licence in May 2016 due to serious and repeated breaches of AML/CFT requirements,” Ho Hern Shin, deputy managing director (Financial Supervision), MAS, said.

“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,” she added.