SINGAPORE – The Monetary Authority of Singapore announced on Tuesday prohibition orders against two former banking and financial services executives for their involvement in the corruption case related to Malaysian state investment fund 1MDB.
Singapore’s central bank said in a statement that it had imposed a lifetime ban on Yeo Jiawei – a former wealth manager of Swiss bank BSI – from providing financial advisory services in the city-state, while it had slapped a three-year ban on Kevin Scully, former CEO of NRA Capital.
Yeo was sentenced to four-and-a-half years in prison in July on several charges, including money laundering and witness tampering during the Commercial Affairs Department’s investigation into his involvement in the scandal.
In Scully’s case, he had been appointed to perform the valuation of PetroSaudi Oil Services Limited, a company linked to the scandal, and MAS found that Scully had failed to ensure that NRA’s valuation of PSOSL was carried out with sufficient care, judgment and objectivity.
The MAS prohibition orders also prevents Scully taking part in the management of, acting as a director of, or becoming a substantial shareholder of any financial advisory services firm in Singapore.
In total, Singapore’s central bank has now issued prohibition orders against eight people involved in 1MDB-related matters, and imposed sanctions amounting to more than $20 million on banks operating in the country for their faults in mechanisms of money laundering prevention.
As well as Singapore, five other countries, including the United States and Switzerland, are also investigating the banking movements of 1MBD, which was created to enrich the Malaysian public treasury and accrued a debt of 42 billion ringgit (about $10 billion) in 2014.
In 2015, a newspaper investigation revealed that around $681 million from 1MDB was diverted to personal accounts belonging to Malaysian Prime Minister Najib Razak, who founded the fund in 2009.
Najib and 1MDB denied the allegations and an investigation by the Malaysian prosecutor’s office exonerated the prime minister in January 2016.