Bank accounts seized here in relation to 1MDB case

Singapore

A "LARGE number" of bank accounts have been seized by the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS) in connection with investigations into possible money-laundering and other offences carried out here, the two bodies said in a joint statement on Monday evening.

The two-paragraph statement, coming in response to media queries related to 1Malaysia Development Berhad (1MDB), also revealed that Singapore is cooperating with the US authorities - the first official sign that the US is looking into the 1MDB case.

Before this, the only indication that the Americans were on the trail came from media reports quoting unnamed sources. The US Federal Bureau of Investigation (FBI) has yet to confirm whether it has opened a probe into the Malaysia state investment firm.

Said the CAD and MAS: "Singapore does not tolerate the use of its financial system as a refuge or conduit for illicit funds. Since the middle of last year, CAD and MAS have been actively investigating possible money laundering and other offences carried out in Singapore. In connection with these investigations, we have sought and are continuing to seek information from several financial institutions, are interviewing various individuals, and have seized a large number of bank accounts.

"Singapore is also cooperating closely with relevant authorities, including those in Malaysia, Switzerland and the United States. We have responded to all foreign requests for information and have requested information from relevant counterparts to aid in our investigations. As investigations are still on-going, we are not able to provide more details at this stage."

That a "large number" of bank accounts have been seized is also a new development. Last July, the Singapore Police Force (SPF) told The Business Times that it had launched a probe into possible money laundering offences in relation to two Singapore bank accounts involved in the 1MDB saga - issuing orders on July 15 to freeze both.

Last Friday, Swiss Attorney-General Michael Lauber said that he had formally asked Malaysia for help with his probe into the alleged misappropriation of US$4 billion (S$5.7 billion) linked to 1MDB.

The office of Switzerland's top prosecutor added that so far, it had been ascertained that "a small portion" of the money was transferred to accounts held in Switzerland by former Malaysian public officials and both former and current public officials from the United Arab Emirates.

Mr Lauber's office added: "So far, four cases involving allegations of criminal conduct and covering the period from 2009 to 2013 have come to light in this connection (relating to Petrosaudi, former 1MDB subsidiary SRC, Genting/Tanjong and Abu Dhabi Malaysia Investment Company), each involving a systematic course of action carried out by means of complex financial structures."

Two days later, Malaysian Deputy Prime Minister Ahmad Zahid Hamidi told reporters in Kuala Lumpur that the Swiss should not have made public its request for help, saying the move strains ties between the two countries.

Just last week, Malaysian Attorney-General Mohamed Apandi Ali cleared Prime Minister Najib Razak of criminal offences or corruption, declaring that the RM2.6 billion (S$870 million) found in the personal bank accounts of Mr Najib was a donation from the Saudi royal family.

READ MORE: IMDB: the lingering threat posed by foreign probes