DBS CEO Piyush Gupta is unsackable

[LITTLEREDDOT]

DBS' CEO Piyush Gupta is unsackable even with so many mishaps.
Why? Because he makes so much money for Temasek.

A History Of DBS Glitches​

Singapore Airlines' ang moh VP of Public Affairs Rick Clements was heard live on CNN 31st Oct 2000, the night of the Taipei Boeing 747 crash which claimed 81 lives, telling the world, "There are no fatalities". Speaking on the meltdown of DBS' banking systems which triggered an island-wide breakdown of over 1,000 DBS and POSB automated teller machines (ATMs), chief executive Piyush Gupta said, "Actually we have very good safeguards. We have multiple redundancies built into our systems". Either these Foreign Talents are lying through their teeth, or they are clueless about the organisation that hired them. David Gledhill, DBS' head of Group Technology and Operations, even boasted, "...this is the first time a problem of this nature has occurred." Once again, white man speak with forked tongue. Straits Times has listed the ocurrences of "a problem of this nature" in today's paper:

September 2000: All branch computers and 900 DBS/POSB ATMs and Nets services went on the blink for 1 1/2 hours;

February 2001: All DBS ATMs, Nets services and Internet banking were knocked out at lunchtime for 45 minutes;

September 2009: Computers at DBS branches went bonkers, preventing customers from withdrawing more than $2,000 or updating passbook;

October 2009: DBS Internet banking services were kaput for 3 whole hours.

The IT failures disrupted and inconvenienced businesses and the public. It could have been worse. Under the watch of Randolph Sullivan, Chief Executive Officer of DBS Bank (Hong Kong), 83 customer safe deposit boxes at its Mei Foo branch were removed, sent to a scrapyard and crushed in October 2004, due to "a combination of human error, inadequate project oversight and the lack of formalised procedures for safe deposit box removal".

 

[LITTLEREDDOT]

Singapore bank suffers massive IT failure​

Reuters

Jul 7, 2010

One of Singapore’s biggest banks suffered a major IT outage on Monday that took down its computer systems for seven hours.

The outage knocked DBS Bank’s back-end computer systems offline, leaving its customers unable to withdraw cash from ATM machines on Monday morning.

“We first knew of the problem at 3:00 a.m. (Singapore time) and by 10:00 a.m., all our branches and ATMs were fully operational. We are conducting a full investigation into the cause of yesterday’s problem, thus will not be in a position to comment much about the cause at this point in time,” wrote Jenny Lee, a spokeswoman for the bank, in an e-mail response to questions on Tuesday.

The outage affected all of DBS’ consumer and commercial banking systems, but no data was lost during the system failure, she said.
When DBS branches opened at 8:30 a.m. Monday, the bank was able to accept cash checks -- personal checks made out to ‘cash’ -- worth up to S$500 (US$359) until systems were restored, DBS said in a statement. Customers could also make cash withdrawals over the counter, and branches stayed open for an extra two hours, until 6:30 p.m.

While the root cause of the outage remains uncertain, DBS is investigating the system failure with help from IBM, which runs some of the bank’s IT operations under an outsourcing contract.

“The bank has multiple levels of redundancy to protect against such occurrences and this is the first time a problem of this nature has occurred. We are now conducting a full scale investigation with our main vendor IBM,” said David Gledhill, managing director and head of group technology and operations at DBS, in the statement.

It wasn’t immediately clear why the bank’s backup systems didn’t prevent the outage.

DBS signed a 10-year outsourcing deal with IBM valued at S$1.2 billion in November 2002. That deal included the transfer to IBM of 500 DBS IT staff based in Singapore and Hong Kong. The scope of the agreement was broad, with IBM agreeing to “provide an integrated 24/7 customer help desk support, manage many of DBS’ current applications, and provide systems management disciplines across the bank,” according to a press release announcing the deal.

As part of the agreement, IBM also built new IT facilities in Hong Kong and Singapore, which used “the very latest computer technologies to further improve the processing power, security and back up capability of DBS’ IT operations,” the statement said. DBS retained direct control over many key IT functions, including IT strategy and architecture, IT security and “strategic projects,” it said.

IBM was closely involved in efforts to bring DBS’ computers back online after Monday’s failure, the company said.

“IBM worked with DBS immediately to restore services disrupted by an outage in the bank’s systems on Monday. IBM is committed to working with DBS on a full scale investigation and supporting the bank in providing high quality services to its customers,” IBM spokesman Alvin Lai said in an e-mail.

The collapse of DBS’ IT systems caught the attention of the Monetary Authority of Singapore (MAS), the country’s central bank, which oversees the financial services industry in the Southeast Asian city-state.

“As part of IT and operational risk management, banks are required to investigate promptly the causes of system breakdowns and take immediate measures to rectify system failures and restore customer services. Subsequent action is also required to strengthen the system and prevent future recurrence,” an MAS spokeswoman said via e-mail.

Banks in Singapore are required to follow technology risk management and computer security guidelines issued by MAS that are designed to ensure the “robustness and resiliency” of banking and finance-related computer systems. “As part of its supervision of banks, MAS assesses banks’ compliance with these requirements, and will take appropriate supervisory action where necessary,” the spokeswoman said.

 

[syed putra]

Gauge the person based on growth.

 

[syed putra]

DBS' CEO Piyush Gupta is unsackable even with so many mishaps.
Why? Because he makes so much money for Temasek.

A History Of DBS Glitches​

Singapore Airlines' ang moh VP of Public Affairs Rick Clements was heard live on CNN 31st Oct 2000, the night of the Taipei Boeing 747 crash which claimed 81 lives, telling the world, "There are no fatalities". Speaking on the meltdown of DBS' banking systems which triggered an island-wide breakdown of over 1,000 DBS and POSB automated teller machines (ATMs), chief executive Piyush Gupta said, "Actually we have very good safeguards. We have multiple redundancies built into our systems". Either these Foreign Talents are lying through their teeth, or they are clueless about the organisation that hired them. David Gledhill, DBS' head of Group Technology and Operations, even boasted, "...this is the first time a problem of this nature has occurred." Once again, white man speak with forked tongue. Straits Times has listed the ocurrences of "a problem of this nature" in today's paper:

September 2000: All branch computers and 900 DBS/POSB ATMs and Nets services went on the blink for 1 1/2 hours;

February 2001: All DBS ATMs, Nets services and Internet banking were knocked out at lunchtime for 45 minutes;

September 2009: Computers at DBS branches went bonkers, preventing customers from withdrawing more than $2,000 or updating passbook;

October 2009: DBS Internet banking services were kaput for 3 whole hours.

The IT failures disrupted and inconvenienced businesses and the public. It could have been worse. Under the watch of Randolph Sullivan, Chief Executive Officer of DBS Bank (Hong Kong), 83 customer safe deposit boxes at its Mei Foo branch were removed, sent to a scrapyard and crushed in October 2004, due to "a combination of human error, inadequate project oversight and the lack of formalised procedures for safe deposit box removal".

Silverlake axis supply most of local bank software.

 

[LITTLEREDDOT]

Singapore central bank censures DBS on breakdown​

By Reuters Staff

Aug 4, 2010

* DBS told to set aside S$230 mln more for operational risk
* DBS says additional capital to have little impact on Tier 1
* MAS asks banks to comply with tech standards or risk action (adds details from MAS, DBS statements)

SINGAPORE, Aug 4 (Reuters) - Singapore's central bank on Wednesday asked DBS Group DBSM.SI to set aside S$230 million ($170.5 million) additional regulatory capital for operational risk following the breakdown of the bank's network on July 5.

Analysts said the demand for regulatory capital shows that the central bank is sending a message to all banks operating in the city-state that it will not tolerate banking services disruptions in one of Asia’s main banking centres.

Banking services at the Singapore branches and automated teller machines at DBS and its unit, POSB, were disrupted following technical problems last month. The services were restored within a few hours.

Singapore, which is the Asian headquarters for many private banks such as Credit Suisse CSGN.VX, competes against Hong Kong in the fields of wealth management and funds.

“This incident has revealed weaknesses in DBS Bank’s technology and operational risk management control,” the central bank said in a statement.

MAS also highlighted several steps DBS should take to ensure such incidents are avoided.

The central bank also said it has recently written to the CEOs of all financial institutions to remind them of maintaining robust technology risk management systems.
“MAS will not hesitate to take appropriate supervisory action against any financial institution which fails to meet the standards,” it said.

DBS said in a statement the additional regulatory capital would result in the bank’s proforma Tier 1 capital and total capital adequacy ratio to come down by 0.2 percentage points to 12.9 percent and 16.3 percent respectively.

“DBS would like to assure customers that taking into account the regulatory capital charge, our total capital adequacy ratio is still comfortably above the required levels,” DBS CEO Piyush Gupta said in the statement.

DBS, which conducted an investigation with its main vendor IBM IBM.N to determine what caused the first such major disruption for the bank, said it has taken several steps to prevent such breakdowns in the future.

“DBS is deeply sorry for the outage and once again, my apologies to our customers for all the inconvenience caused,” Gupta said in the statement. (Reporting by Nopporn Wong-Anan; editing by Saeed Azhar)

 

[Hypocrite-The]

Ownself check ownself

 

[millim6868]

He us so call at the right place n right time, he us just a cb ceca,now dbs all ceca ,majority all kampong buddy ,fakes ,lol

 

[millim6868]

Only cb papigs acknowledge cos papugs are also a bunch of useless craps

 

[millim6868]

50% likes it let s aee

 

[LITTLEREDDOT]

DBS executive who spent $82k on customers' credit cards is jailed more than 3 years​

Choo could have been jailed for up to 15 years and fined for criminal breach of trust as a servant. ST GRAPHICS
Elena Chong
Court Correspondent


AUG 14, 2015, 4:45 PM SGT

SINGAPORE - A DBS Bank senior service executive kept credit cards that customers had wanted cancelled, then used them to pay for drinks and hostesses at nightclubs.
Stephen Choo Jianwei, 32, misappropriated them from six customers and chalked up $82,000 on them over a period of seven months.
He was jailed for three years and three months on Friday after pleading guilty to 30 of 110 charges.
A district court heard that Choo was attached to the Great World City branch at Kim Seng Promenade when he committed misappropriation and cheating offences between April and November 2013. He claimed that he had a drinking habit.

Choo was attached to the Great World City branch at Kim Seng Promenade when he committed misappropriation and cheating offences. PHOTO: SINGAPORE POLICE FORCE
Customers would approach Choo to close their accounts but Deputy Public Prosecutor Tow Chew Chi said that at the end of the day he would retrieve the cards he was supposed to shred.
He used them to pay for food, alcohol and hostesses' services. He also bought car care products, a GPS navigator and other items.
Only $186 worth of goods were recovered.

 

[LITTLEREDDOT]

Investor sues DBS over option advice​

She claims bank misled her into buying 'useless' options to protect margin positions​

Ms Suryawan alleges DBS misled her into buying options meant to protect against volatile forex markets. PHOTO: REUTERS

Selina Lum
Law Correspondent

NOV 4, 2015

SINGAPORE - A Singapore businesswoman, who lost US$6 million (S$8.4 million) in forex trades, has sued DBS Bank, seeking to restore her accounts to their levels before the bank closed out her trading positions.
Ms Florence Suryawan, 53, alleges that the bank had misled her into buying options meant to protect her against volatile forex markets.
These options, which work like insurance, turned out to be "useless" for hedging her investments.
In September 2011, the falling Australian dollar caused Ms Suryawan, who was acquiring the currency through structured products known as accumulators, to suffer massive losses.
After DBS closed out her positions, the total balance of her accounts with the bank fell from US$6.2 million to about US$410,000.
But the bank says it was not responsible, contending that Ms Suryawan was a sophisticated and experienced investor who relied on her own judgment in deciding to buy the options.
A hearing into the lawsuit started in the High Court yesterday.

Ms Suryawan has diverse business experience, from manufacturing to digital media.
A private banking customer of DBS, she accepted its offer of a margin trading facility with a limit of US$50 million in August 2008. By the end of that year, forex trading became her full-time pursuit.
In 2010, she started investing in accumulators, "buying" the Australian dollar at regular intervals below the prevailing market price for a fixed period of time. If the price rose within a certain range, she would make a profit, but a price drop could lead to huge losses.
Between August and September 2011, as the market was volatile, she bought nine options from DBS. She said the bank's employees described them as insurance to protect her margin positions.
On Sept 22, when an employee called her about her falling margin level, she reminded him of the options and was "astonished" when he replied that the ones she bought did not protect her.
Ms Suryawan said she was dazed that the bank unwound and closed her positions after the phone call.
Her lawyer, Mr Nicholas Narayanan, argued that DBS was negligent in advising her about the options, and made false representations about the protection offered.
He also argued that DBS was not entitled to close out her positions as she did not make a valid margin call on Sept 22.
But Senior Counsel Ang Cheng Hock, for DBS, contends that she understood how the options worked and that the bank was not obliged to give investment advice.

 

[LITTLEREDDOT]

DBS probing three-hour online service disruption​

Downtime affects all transactions for Internet banking users relying on security tokens​

DBS is investigating why its Internet banking users relying on security tokens were unable to to log in for three hours on Tuesday morning. ST PHOTO: TIFFANY GOH

Lester Hio

DEC 23, 2015

DBS is investigating why its Internet banking users who rely on their security tokens to log in and use online services were unable to do so for three hours yesterday morning.
The downtime affected all transactions which required users to log in with a one-time password (OTP) generated by their DBS security tokens. These included transferring funds, checking account balances and paying bills.
When users keyed in their OTPs on the website, they received an error message saying that the wrong password had been entered.
All services were fully restored by 12.40pm yesterday afternoon, according to a DBS spokesman.
In a statement on its Facebook page, DBS said customers could use an SMS OTP - where a password is sent to the user's mobile phone - to carry out their transactions instead.
The spokesman said: "Some customers may have experienced difficulties accessing DBS/POSB iBanking services via their iB Secure Device/Token yesterday morning. They were advised to use SMS OTP to conduct their transactions instead. We took immediate steps to rectify the situation and to minimise service disruptions."
The Straits Times understands that the downtime was due to system issues and that DBS is investigating the root cause of the matter.

These security tokens form the second layer of two-factor authentication (2FA), where sensitive transactions are protected by two sets of passwords. Banks have made 2FA a standard protection for online access since 2006, as required by the Monetary Authority of Singapore.
One way that these security tokens work is through time-based synchronisation, where passwords are generated using the current time that is run through an algorithm, said Mr Charles Fan, chief executive of IT security specialist Assurity Trusted Solutions.
"The problem could be that the security tokens are out of sync with the authentication server - the central system," said Mr Fan.
"This incident could be due to a time drift on the authentication server, thus causing all security tokens to be out of sync.
"This means that the OTP displayed on the token and the OTP in the authentication server are different. Thus, the system will not allow the transaction to go through," he added.
Funeral director Alvin Goh, 39, said the downtime was inconvenient for him as he was unable to process business transactions yesterday morning.
He said: "I could not access any Internet banking services and was subsequently locked out due to security measures. Services resumed at about 3pm for me. The downtime took a bit too long. I also could not get any help from DBS as I couldn't get through on its hotline."

 

[LITTLEREDDOT]

DBS security token users unable to make online transactions for 3 hours​

DBS customers who used their security tokens for Internet banking were unable to carry out transactions on Tuesday morning. ST PHOTO: TIFFANY GOH

Lester Hio

MAR 1, 2016

SINGAPORE - DBS Internet banking users who relied on their security token to log in to online services were unable to carry out transactions on Tuesday (Dec 22) morning when the system went down.
The downtime lasted about three hours, starting at about 9.30am and affected all transactions which required users to log in with a one-time password (OTP) generated from their DBS security token.
These included transferring funds, checking account balances and payment of bills.
In a statement on their Facebook page at 10.40am , DBS said that users could have used a SMS OTP - in which a password is sent to the user's mobile phone - to carry out their transactions instead.
The Straits Times understands that the downtime was due to a system issue.
A DBS spokesman said: "Some customers may have experienced difficulties accessing DBS/POSB iBanking services via their iB Secure Device/Token this morning."
"They were advised to use SMS OTP to conduct their transactions instead. We took immediate steps to rectify the situation and to minimise service disruptions. All services were fully restored by 12:40pm."

However, some users said on DBS's Facebook page that, as of 4pm on Tuesday, they could still not access online services using the security token.

 

[LITTLEREDDOT]

DBS assistant service manager jailed 13 months for taking almost $50,000 from bank vault​

Kasturi Pakiyam Ramanathan was jailed for 13 months after she pleaded guilty to a charge of criminal breach of trust by a servant. PHOTO: ST FILE
Amir Hussain


MAY 10, 2016

SINGAPORE - An assistant service manager entrusted with cash at the DBS bank vault at the POSB Ngee Ann City branch took close to $50,000 in cash to pay off loan sharks and to feed her gambling habit, a court heard.
On Tuesday (May 10), Kasturi Pakiyam Ramanathan, 39, was jailed for 13 months after she pleaded guilty to a charge of criminal breach of trust by a servant.
A district court heard Kasturi deposited and withdrew cash from the bank vault as part of her job. She was also tasked with ensuring that the cash in the vault tallied with the bank's records.
On various occasions between August and October 2014, she took $49,500 from the vault without permission.
Each time she took some cash, she would pretend to be reserving new notes for a customer and withdraw a block of notes totalling $50,000, which was in $50 denominations.
She would place the block of notes in her work drawer and, when no one was looking, pull out several notes from the block and leave them in the drawer.
She would then reseal the block and deposit it back into the vault after the bank closed, and collect the money in her drawer at the end of the work day.


To ensure that she was not caught, she even came back to work on her days off so that her colleagues would not handle the tampered blocks of money that were in the bank vault.
Kasturi used the money to repay loans from moneylenders, relatives and friends, and to gamble via Singapore Pools and on betting websites, the court heard.
Deputy Public Prosecutor Nicholas Tan asked for 13 to 15 months' jail, noting that her offence directly targeted a financial institution.

"The accused was entrusted with access to the vault of the bank, perhaps one of the most secure places in the bank, and she broke the trust reposed in her," he said.
In mitigation, Kasturi, who did not have a lawyer, claimed that she was stressed by loan sharks who had threatened to harm her family.
The unlicensed moneylenders asked her to work for them, but she did not take up the offer. They also asked for her bank details, but she did not give it to them.
"I hope for some leniency," she told District Judge Adam Nakhoda.
The judge agreed with the prosecution that her employer had placed a high degree of trust in her.
He also noted that the sum involved was relatively large.
The judge backdated her sentence to April 28, when she was first remanded.
For committing criminal breach of trust as a servant, Kasturi could have been jailed for 15 years and fined.

 

[LITTLEREDDOT]

Ex-DBS exec jailed for cheating clients​

He took nearly $700k from 11 victims who are either elderly or non-S'pore residents​

Elena Chong
Court Correspondent

MAY 13, 2016

A former DBS branch relationship manager who cheated 11 victims of almost $700,000 over two years was jailed for 56 months yesterday.
Eng Sze Keat, 32, had admitted to 27 counts of cheating, criminal breach of trust, forgery, transferring property which represented benefits from criminal conduct, and theft. Another 73 charges were taken into consideration.
When part of the sales team at the Royal Brothers Building branch of DBS, his duties included selling unit trusts, insurance policies and foreign exchange products to DBS customers.
He also helped customers to deposit or withdraw cash, and handled office administrative work.
Investigations showed that most of his customers who eventually became his victims were either elderly or non-Singapore residents.
After his customers agreed to buy a product and filled in their personal details on the necessary application forms, he assured them that he would fill in their remaining details later.
He would either slip in a fund transfer request form, a fixed deposit transaction form or an MAS Electronic Payment System application form for the customers to sign, or forge their signatures.

He would then fill in the forms with instructions to transfer the money to his friends' or family's bank accounts, including those of his ex-girlfriend and his mother.
Once the money was transferred, he would either ask them to transfer those funds into his bank account or withdraw the money in cash and pass it to him.
His offences involved a total of $717,226, including cheating DBS customers of $689,173.
His ex-girlfriend reported him to the police in 2011, alleging that he had used her details to apply for credit cards without her authorisation. He has since made full restitution of $28,000 to her for credit card fraud offences.
Four months later, the Commercial Affairs Department received a report from DBS, alleging that Eng had made unauthorised withdrawals from his clients' accounts.
On Aug 12 that year, Eng left for China with a performing artiste from China. He turned himself in four years later when he returned to Singapore last June.
District Judge Lee Poh Choo said Eng, represented by Mr Josephus Tan, exploited his position and had brought disrepute to DBS, a recognised Singapore brand. She noted that the the amount taken was substantial, and Eng had targeted and cheated vulnerable victims.

 

[LITTLEREDDOT]

DBS, OCBC sued by US-based investment funds​

JUL 3, 2016

Two US-based investment funds have filed a lawsuit in New York against dozens of banks, accusing them of conspiring to rig derivative prices incorporating Singapore interest rate benchmarks, a court filing shows.
The suit was filed by Greenwich, Connecticut-based FrontPoint Asian Event Driven Fund and New York-based Sonterra Capital Master Fund and traces back to the 2013 scandal in Singapore when the central bank found more than 100 traders in the city-state had tried to rig key borrowing and currency rates.
Among the banks being sued are Citigroup, Bank of America, JPMorgan Chase, RBS, UBS, ING, BNP Paribas, OCBC, Barclays, Credit Agricole, Credit Suisse, Standard Chartered, DBS, Mitsubishi UFJ, HSBC, Macquarie and Commerzbank.
A Citigroup spokesman said the suit "is without merit and we will defend ourselves vigorously".
Credit Suisse, DBS and OCBC Bank declined to comment.
The other banks did not immediately respond to requests for comment outside business hours.
In 2013, the Monetary Authority of Singapore (MAS) censured a record 20 banks, saying 133 traders had tried to manipulate rates, including the benchmark bank-to- bank Sibor (Singapore interbank offered rate), the Swap offer rate and derivatives.

It did not fine the banks involved, but instead directed 19 of them to set aside additional reserves for a year and to adopt measures to address deficiencies.
The MAS has since returned all of the around US$9 billion (S$12 billion) it took from the banks as penalties, saying they have acted to prevent a recurrence of attempts to rig rates.
The authorities in the United States and Europe have also been investigating rate manipulations, most notably Libor (London interbank offered rate), slapping fines of billions of dollars on banks, including Barclays, RBS and UBS.
FrontPoint said it engaged in transactions from within the US for Sibor-based derivatives at "artificial prices proximately caused by Defendants' unlawful manipulation and restraint of trade".
Sonterra said it engaged in US- based transactions for Sibor-based derivatives, including Singapore dollar foreign exchange forwards.
"As a consequence of Defend- ants' manipulative conduct, Sonterra was damaged when it was overcharged and/or underpaid in transactions for Singapore dollar foreign exchange forwards," the filing says.
The two investment companies seek compensation for "treble the damages" incurred.
REUTERS

 

[LITTLEREDDOT]

DBS, UBS, Falcon face Singapore scrutiny over Malaysia's 1MDB​

DBS Group Holdings is one of the banks to face scrutiny over Malaysia's 1MDB. PHOTO: ST FILE

JUL 17, 2016

SINGAPORE (Reuters) - Singapore's central bank is scrutinising several banks, including UBS and DBS Group Holdings, to see if they broke anti-money laundering rules in handling transactions linked to scandal-hit Malaysian state fund 1MDB, three people with knowledge of the matter said.
The Monetary Authority of Singapore (MAS) is looking at several aspects of the banks' operations including whether they were diligent enough in knowing who their customers were and what the source of their funds was, and whether they were particularly careful in screening politically-exposed persons such as government officials, banking and legal sources aware of the review said.
The probe could lead to fines and other penalties if lapses are found, said the sources who declined to be identified due to the sensitivity of the matter.
It is unclear which transactions by the banks are being examined.
Switzerland's Falcon Private Bank and Coutts International, which is owned by Geneva-based Union Bancaire Privee, are also among the banks under review, they said.

UBS, Coutts, and DBS, which is Singapore's top lender, all declined to comment.
When asked about the MAS review, a Zurich-based spokesman for Falcon said: "We have transparently shared our view and have nothing to add."

Falcon, which is owned by one of the world's leading sovereign wealth funds - Abu Dhabi's International Petroleum Investment Company (IPIC) - has previously said it is in contact with Singapore's central bank and cooperating with authorities.
The MAS is in talks with several banks and will make an announcement on any punitive action against them after the review is completed, sources said. The full details are not known at this stage.
Singapore faces pressure to show that banks in the city-state are complying with increasingly tough anti-money laundering rules around the world.

While the United States has imposed hefty fines on banks for lapses related to money laundering, tax evasion and international sanctions, Asian regulators have been generally slow to act, some lawyers said.
"It is also important for Singapore to be seen to be taking action against any abuse of its private banking sector for money laundering," said Nizam Ismail, Singapore-based partner at RHTLaw Taylor Wessing LLP, where he advises clients on financial services regulation and compliance.
An MAS spokeswoman referred Reuters to its statement in March when it had said that "as part of its investigations into possible money-laundering and other offences in Singapore, it has been conducting a thorough review of various transactions as well as fund flows through our banking system."
1MDB referred Reuters to its earlier statements.
In May, it had said it hadn't been contacted by any foreign lawful authority on matters relating to the company, and that it remains committed to fully cooperating with the authorities.
The latest probes follow MAS's decision in late May to close down the operations of Swiss private bank BSI AG in Singapore for serious breaches of anti-money laundering rules, the first time in 32 years it has taken such action against a bank.
MAS said then that there had been gross misconduct by some of BSI's staff and poor management oversight of the bank's operations.
Though the MAS did not specifically say this related to 1MDB-related transactions, though the Swiss Financial Market Supervisory Authority (FINMA) said at the time that BSI had committed serious breaches of money laundering regulations through business relationships and transactions linked to the corruption scandal surrounding 1MDB.
The MAS also imposed a S$13.3 million fine on the bank, and on the same day in May, the Swiss authorities said they would seize 95 million Swiss francs (US$97 million) of BSI's profits.
In response, BSI announced that group CEO Stefano Coduri had stepped down and that it had undertaken steps to strengthen management, including introducing a new chief risk officer and appointing a new group legal counsel.
Malaysian companies and banks linked to 1MDB are at the centre of corruption and money laundering probes that have led investigators to look at transactions and financial relationships across the globe - from Malaysia to Singapore and the Seychelles, from Abu Dhabi to offshore companies in the Caribbean, and from the United States to Switzerland.
Probes are being conducted by authorities in the United States, Switzerland, Luxembourg, Singapore, and the United Arab Emirates.
One of the sources said DBS had identified certain questionable financial activities and had voluntarily reported them to the relevant authorities. Reuters couldn't determine what those activities were.
A Malaysian parliamentary investigation made public earlier this year found that US$4.2 billion of 1MDB's money was unaccounted for or went to overseas bank accounts whose owners could not be ascertained.
1MDB was founded by Malaysian Prime Minister Najib Razak in September 2009 to invest in strategic property and energy projects. Najib was the chairman of 1MDB's advisory board until recently.
Malaysia's Attorney-General Mohamed Apandi Ali cleared Najib in January of any corruption or criminal offences. He said that US$681 million, deposited into Najib's personal account in March 2013 before a Malaysian general election, was a gift from a member of Saudi Arabia's royal family and most of it was returned.
Najib has repeatedly denied any wrongdoing.

 

[LITTLEREDDOT]

Singapore authorities to take action against DBS, StanChart and UBS branches among others in 1MDB probe​

The Monetary Authority of Singapore at 10 Shenton Way. ST PHOTO: KEVIN LIM

Grace Leong
Senior Business Correspondent

JUL 21, 2016

SINGAPORE - Responding to US action overnight in its probe of corruption at Malaysian state fund 1MDB, Singapore authorities said they have found lapses in anti-money laundering (AML) controls in several financial institutions (FIs) here including DBS and the Singapore branches of Standard Chartered Bank and UBS and will be taking action against them.
They also added that bank accounts belonging to various individuals have been seized and dealings in properties belonging to some of these individuals have been curtailed. The assets amount in total to S$240 million. Of these bank accounts and properties of about S$120 million belong to Mr Low Taek Jho - Malaysian financier and confidant of Malaysian premier Najib Razak - and his immediate family.
In a joint statement on Thursday (July 21), the Attorney-General's Chambers, Commercial Affairs Department (CAD) and Monetary Authority of Singapore (MAS) said they are continuing their investigations of various 1MDB-related fund flows through Singapore for possible money laundering, securities fraud, cheating, and other offences committed here.
"We note the statement by the US Attorney General on 20 July 2016, seeking the forfeiture and recovery of more than US$1 billion in assets associated with an international conspiracy to launder funds related to 1MDB," they said. "Singapore's investigations began in March 2015 and are still in progress."
The US Justice Department on Wednesday (July 20) moved to seize more than $US1 billion in assets allegedly tied to corruption at 1MDB.
None of the civil lawsuits that were filed in California name Malaysian Prime Minister Najib Razak, who oversaw the state-owned investment fund, but they contain details that appear to directly implicate him.

Prosecutors in at least four countries - Singapore, Switzerland, Luxembourg and the US - are looking into money flows from the investment vehicle, formally called 1Malaysia Development Berhad, which was established for national development.

The Singapore authorities also disclosed a new name in their probe - Raffles Money Change, a licensed money changer and remittance agent. MAS said examination revealed weak management oversight, inadequate risk management practices and internal controls. Its specific findings include failure to identify beneficial owners, verify authenticity of remittance instructions, and assess if a customer's remittance activities are consistent with the profile of the customer.
MAS said it is finalising regulatory actions against RMC. It said their probe of certain other FIs are ongoing. It will take decisive regulatory actions against any FI that has breached regulations or failed to meet the expected AML standards, said MAS.
The three Singapore agencies said fund flows being investigated include those connected with Good Star Limited (Seychelles), Aabar Investments PJS Limited (BVI), Aabar Investments PJS Limited (Seychelles), and Tanore Finance Corp. (BVI). The criminal investigations by CAD are targeted at individuals suspected of committing offences in Singapore related to these flows, while MAS has been examining the financial institutions through which the funds flowed for possible regulatory breaches and control lapses.
MAS also said it has completed its inspections of DBS and the Singapore branches of Standard Chartered Bank and UBS and is now finalising its assessments.
"The preliminary findings are that there were instances of control failings in all three banks and, in some cases, weaknesses in the processes for accepting clients and monitoring transactions. There was also undue delay in detecting and reporting suspicious transactions," it said.
The deficiencies observed in DBS, SCB and UBS related to lapses in specific processes and by individual officers. The lapses were serious in their own right, and will be met by firm regulatory actions against the banks. However, the MAS' inspections did not reveal pervasive control weaknesses or staff misconduct within these banks, unlike in the case of BSI Bank.
MAS also said it completed its onsite inspection of Falcon Private Bank's Singapore branch in April 2016, and found substantial breaches of anti-money laundering regulations, including failure to adequately assess irregularities in activities pertaining to customers' accounts and to file suspicious transaction reports.
However, the supervisory examination of Falcon PBS is still ongoing as the oversight and management of certain key client relationships were done out of the bank's head office in Switzerland. MAS is examining information obtained from Falcon PBS' head office and has asked for further details.

 

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1MDB scandal: MAS raps DBS, StanChart and UBS over control lapses​

DBS, StanChart, UBS had delays in detecting shady dealings, face 'firm regulatory actions'​

Facade of the Monetary Authority of Singapore (MAS) building at 10 Shenton Way. PHOTO: BLOOMBERG

Grace Leong
Senior Business Correspondent

JUL 22, 2016

Three major banks in Singapore have been rebuked by the Monetary Authority of Singapore (MAS) over serious lapses of anti-money laundering controls, as the 1MDB scandal deepens.
The Singapore authorities also seized about $240 million worth of assets in relation to various 1MDB-related fund flows.
The rare reprimand comes ahead of yet to be specified "firm regulatory actions" against DBS Bank and the Singapore branches of UBS and Standard Chartered Bank.
The moves follow a dramatic lawsuit launched by the United States Department of Justice (DOJ) to recover over US$1 billion (S$1.35 billion) in assets related to the global money laundering probe of the Malaysian state fund.
In Malaysia, however, Prime Minister Najib Razak and his government downplayed the significance of the DOJ's move. He told reporters: "This is a civil action, this is not a criminal action. It is limited to the names mentioned in the DOJ report."
The MAS yesterday said its probe found that certain financial institutions were used as "conduits" for a complex international web of transactions involving multiple entities and individuals operating in jurisdictions including Singapore, the US and Hong Kong.

The regulator also said $120 million seized belonged to Malaysian billionaire Low Taek Jho and his immediate family. These are believed to include two units at luxury condo TwentyOne Angullia Park.

Mr Low is a confidant of Mr Najib's family who has been dogged by the scandal for months.

DBS, StanChart and UBS had "instances of control failings and in some cases, weaknesses in the processes for accepting clients and monitoring transactions," MAS said yesterday. The regulator's preliminary findings also showed undue delays in detecting and reporting suspicious transactions.
"The deficiencies in DBS, StanChart and UBS related to lapses in specific processes and by individual officers," MAS said.

While the lapses were "serious in their own right, and will be met by firm regulatory actions against the banks", the MAS probe did not reveal "pervasive control weaknesses or staff misconduct" such as that found in the case of BSI Bank.
BSI's status as a merchant bank here was withdrawn by MAS in May after breaches of anti-money laundering rules and findings of poor management oversight and gross misconduct by its staff.
Falcon Private Bank's branch here and a remittance agent, Raffles Money Change (RMC), were also reprimanded. For RMC, MAS found weak management oversight and inadequate risk management practices and internal controls. MAS is also looking into several other financial institutions.
CIMB Private Bank economist Song Seng Wun is confident that the ongoing probe will have minimal impact on Singapore's reputation as a financial hub.
In its suit, the DOJ had alleged that funds diverted from 1MDB were used to buy luxury US real estate, pay gambling debts at the Venetian casino and Caesars Palace in Las Vegas, and fund Hollywood movie The Wolf Of Wall Street starring Leonardo DiCaprio. Funds originating from 1MDB also allegedly went to Red Granite Capital, a company owned by Mr Riza Aziz, a stepson of Mr Najib.
Some of those funds were transferred to an account at StanChart here held by an entity called Alsen Chance, and were allegedly used to pay gambling expenses for Mr Low and Mr Riza at the Venetian in Las Vegas in July 2012, the suit said.

 

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DBS exposure to Swiber Group at $700 million, expects to recover half​

DBS Group has said its exposure to Swiber Group totalled about S$700 million but added that it expected to recover half the amount. ST PHOTO: JAMIE KOH

Rupali Karekar

JUL 28, 2016

SINGAPORE - DBS Group has said its exposure to Swiber Group totalled about S$700 million but added that it expected to recover half the amount.
Swiber Group, the mainboard-listed offshore services firm, announced Thursday that it was winding up.
In a filing on SGX, DBS said the exposure to the Group comprised loans, bonds and off-balance sheet items.
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"As the exposure was partially secured, DBS expects to recover half of it and will provide fully for the anticipated shortfall," it said in a statement.
"DBS will tap on its surplus general allowances and the new allowance charge will be lower, at about S$150 million," the statement added.
DBS further assured that its balance sheet remains strong and there is minimal impact on its capital adequacy ratio.
DBS is scheduled to announce its second quarter results in the first week of next month.

Swiber on Wednesday filed a petition to wind up and liquidate itself after facing US$25.9 million ($35.1 million) of demands from creditors.
A Singapore court will hear its application on Aug. 19, it said in filings.
Singapore Exchange Ltd. said on Thursday (July 28) that it will be undertaking a "thorough investigation" into developments at Swiber.
Founder and non-executive chairman Raymond Kim Goh resigned from his position as Vallianz Holdings' chairman and executive director overnight due to "health reasons".
Three other directors of the company, vice chairman Francis Wong, chief financial officer Leonard Tay and executive director Nitish Gupta have also quit, Swiber said on Thursday.
Earlier in the week Swiber revealed that a US$710 million project it was contracted for in West Africa had been severely delayed and another in Vietnam cancelled.