Singapore stepping up misconduct probes, central bank chief says

[SINGAPORE] Singapore will make more robust risk assessments of financial institutions as it steps up investigations against misconduct in the industry, the head of the central bank said.

Financial institutions must promote constant vigilance and set the right moral tone, Ravi Menon, managing director of the Monetary Authority of Singapore, said at an event hosted by the Foreign Correspondents Association in the city Tuesday.

The responsibility of ensuring compliance lies with each company's board and senior management, he said.

In July, Mr Menon vowed stronger action to address the reputational damage caused by anti-money laundering lapses at banks in the city linked to the troubled state investment fund 1Malaysia Development Bhd.

Singapore is the first country to charge a banker for alleged financial misconduct related to 1MDB.

The Malaysian investment company is at the centre of several international investigations into alleged corruption and money laundering by public officials.

Prosecutors in at least four countries - Singapore, Switzerland, Luxembourg and the US - are looking into money flows from the investment vehicle, which was established for national development.

BLOOMBERG