MAS bans ex-BSI deputy CEO over neglect in 1MDB debacle; police issue warning

THE Monetary Authority of Singapore (MAS) has banned Raj Sriram – the former deputy chief executive and head of private banking of BSI Bank Singapore (BSIS) – from providing financial advisory services or being part of the management, director or substantial shareholder of any financial advisory firm.

This was for his contribution to BSIS’ failure to file suspicious transaction reports regarding 1Malaysia Development Berhad (1MDB)-related transactions, MAS and the Singapore Police Force (SPF) said in a joint statement on Monday (Oct 10).

On top of a 10-year prohibition order from MAS effective Oct 10, Sriram has received a 24-month conditional warning from the SPF’s Commercial Affairs Department (CAD).

The CAD had investigated Sriram for his role in BSIS’ business dealings and relationships with the subsidiaries of 1MDB and the alleged subsidiary of Abu Dhabi-based Aabar Investments PJS.

Due to Sriram’s neglect, BSIS did not file the suspicious transaction reports although there were reasonable grounds to do so, the CAD found. MAS, which performed a review of his conduct, assessed that his neglect had contributed to BSIS’ failure to file the reports.

MAS deputy managing director of financial supervision Ho Hern Shin said BSIS was a key conduit for tainted funds in the 1MDB debacle. The financial regulatory authority withdrew BSIS’ licence in May 2016 due to serious and repeated breaches of anti-money laundering and countering the financing of terrorism requirements.